Showing posts from May, 2013

MCX Copper in Double Correction

 MCX Copper continuous hourly chart From the above chart, the red metal is moving in a lower high and lower low formation and it is precisely moving in a falling channel Recently the metal faced the resistance of the channel and has broken the support today which opens further negative possibilities. As per wave theory, prices are moving in double correction pattern as per the chart (a-b-c-x-a-b-c) After completing first correction, prices formed wave x close to 740 levels and now since all the important supports are broken it is very much evident that prices are poised to falter and can move below its previous low in form of wave a of second correction. The summation is prices are poised to plunge near till 680-670 levels as far as 733 is intact on the upside.

Hindalco: A pivot high under formation

Hindalco is one of the outperformer stock as compared to other metal stocks such as Jindal Steel, Tata Steel, Hind- Zinc etc. The reason for such outperformance is, it made an accumulation pattern at the level from 86-94 and gave a bullish break which took prices till 113 levels made on 16 th May 2013. The level of 113 is a very crucial  where its previous pivot is placed along with 50% retracement of the previous down move (137-86) and also 200 (SMA) is placed at this level. Now for prices to move in a positive direction it need to take out 113 decisively. With the help of Price and Time grid, we can observe that prices are currently quoting near the intersection of the grid which is suppose to be a crucial resistance. Please understand the grid helps us to identify the important pivots which can be under formation or its in place. The overall view for Hindalco is positive as the stock can move till 120-121 levels over short term. A dip in prices can be utilised as a

Square of 9

SQUARE OF 9. Introduction Square of 9 was one of the greatest invention of W.D. Gann. In the 1920’s there were no calculators, so he invented his own calculator which for him was a Master Calculator . It involved natural law which was the basis of market movements. Origin. The origin of square of 9 came into picture when Gann visited India. Gann was a traveller, when he went to Indian Temple he saw a square within a circle and there were number plotted on it. He then went to Egypt and saw Pyramids. Based on such observations he made the master calculator The Square of 9. Image and Explanation. The above chart is the Square of 9 calculator. Now what we can see is in the center of the chart there is number 1 on its immediate right there is no. 2 placed. Above no.2 there is number 3 and on its left number 4 is placed and finally it ends at number 9. What we can observe from this is the numbers are placed in the spiral form which moves in a circle and t