Elliott Wave – Ending Diagonal Breakdown of B Wave Nifty Oil & Gas IndexNSE:NIFTY_OIL_AND_GAScodebloodedThis study highlights a developing Ending Diagonal Triangle (EDT) formation within a corrective B wave structure, signaling a potential high-probability bearish continuation move. Structure Overview The broader trend shows completion of a prior impulsive 5-wave structure. Price is currently forming a B wave correction, subdividing into a contracting Ending Diagonal. The diagonal is characterized by: Converging upper and lower trendlines Overlapping internal wave structure Decreasing momentum near the terminal high This pattern typically appears at the end of a corrective move and often precedes a sharp and impulsive C wave decline. Trade Thesis A breakdown of the lower boundary of the Ending Diagonal confirms structural weakness. After EDT breakdown in C of B wave, bearish momentum is expected to accelerate, initiating Wave C of the higher-degree correction. Entry Criteria Entry will be considered only after a confirmed daily candle close below the lower trendline of the Ending Diagonal. Intraday breakdowns without daily confirmation are considered premature. Retest of the broken trendline can offer improved risk-reward positioning. Targets Primary downside projections are derived using Fibonacci retracement and extension levels: 0.618 retracement zone 0.786 retracement zone 1.0 extension (Wave C equality with Wave A) Wave C typically unfolds in a 5-wave impulsive structure and may exhibit strong downside velocity. Risk Management Invalidation occurs if price sustains above the upper diagonal boundary. Risk should be defined relative to the most recent swing high within the diagonal. Conclusion The market is approaching a critical decision point. A confirmed breakdown of the Ending Diagonal within B wave increases the probability of a strong C wave decline. This setup favors disciplined traders waiting for structural confirmation rather than anticipatory positioning.