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Showing posts from December, 2013

MCX Copper in Double Correction

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 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.

Reliance Power: Trading with Elliott Wave

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Shares of Reliance Power were buzzing in trade on Friday as it gained 3 percent intraday. Sources said that CBI is likely to close its preliminary enquiry to probe coal block allocation in Reliance Power ’s Sasan project. Sasan power project is an ultra-mega power project with an installed capacity of 4000 MW. The first unit started producing power on March 30 while the second unit started production on December 13. The company's overall generation capacity has crossed 3,200 MW. Reliance Power is executing three UMPPs in Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand). Does news really drive the stock prices or it is the advance technical study that has made aware that the trend is changing.  Reliance Power Daily Chart From the daily chart of Reliance Power, from past 4 months this stock is moving in a range of 80-66 levels. Recently it bounced from the level of 70 and it is capable in moving up till …. levels which is a very good resi

Sun Pharma: Trading with Channels

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We have always given emphasis to channels, as they play very significant role in determining resistance and support levels. Channels are categorized into 2 types ·          Rising channel ·          Falling channel Rising channel occurs when prices are moving up by forming higher highs and higher low formation. This means that whenever, prices protects its previous low and crosses its previous high, rising channel can drawn by joining two highs and two lows. Falling channel can be drawn when prices starts breaching its previous low and forms a lower high. This means that prices are moving in a negative direction. Connect two tops and bottoms to from a downward sloping channel. Daily Chart Analysis From the daily chart, we can observe that prices are moving lower by breaching its previous lows and it is moving precisely in a falling red channel. The stock has a very good support near 560 levels which is the upward sloping blue trend line of rising blue

Larsen and Toubro Elliott Wave Counts and the forthcoming trend

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Larsen and Toubro is a capital good stock which has gained tremendously in past 2 weeks. However, this stock witnessed profit booking from last 4 trading sessions. It is difficult for many investors and traders to know when to buy and when to sell? By using perfect technical tools and combining it with advance technical analysis, it will be easy not only for investors, traders but also for learners. By saying perfect technical tools is by using channels, channels always help to identify resistance and support levels, while advance technicals like Elliott wave analysis helps you to understand the forthcoming trend. We have applied it on Daily chart on Larsen and Toubro Analysis As shown in the daily chart, the stock started moving lower after making high of 1154 on 9 th December 2013. It fell so steeply that currently it has arrived near the support of the blue channel. The overall trend remains negative but we will be more bearish after it breaches ….. level.

Maruti Suzuki Elliott Wave

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Maruti Suzuki is one of the out performer  auto stock just like Tata Motors, Bajaj Auto etc. The trend still looks to be positive but on 12th December 2013 the stock started correcting. It seems that it will change the trend as well. Such kind of movement is difficult to trade but with the help of Elliott wave counts it is easy to identify the reversals. The following excerpt is been picked from our daily research report "The Equity Waves" where we have shown the possible reversals and Elliott wave counts. Maruti Suzuki Daily chart As shown in the daily chart of Maruti Suzuki, currently the stock is moving up by forming higher highs and higher lows which is a positive sign for this auto stock. However, the stock has arrived near the resistance of the channel. RSI has also exhibited negative divergence. As seen in 60 mins chart, .......................... From wave perspective, prices have probably completed wave c of double correction (a-b-c-x-a-b