BHEL: Bearish Breakout and Elliott Wave counts

-

Capital goods stock has always been in demand as it was the only sector which was outperforming when Nifty was trendless. When Nifty started to pick up momentum Capital Goods stock like BHEL, LT etc crossed its previous pivot highs thus opening up positive possibilities. Recently positive momentum in this sector seems to be slowing down which is not a health sign.

We have applied Elliott Wave counts in BHEL to understand the trend in this stock and the possible support using simple technicals.

The below excerpt is been picked from our daily research report “The Equity Waves” where we had mentioned that BHEL has given a negative break.

As shown in the daily chart of BHEL, prices were moving up with great strength after making a low of 145 in the month of February 2014 which enabled prices to cross its previous high of 181 and made a new high of 202 recently, but from past 3 trading sessions prices are moving down by breaching its previous lows which is not a healthy sign.

As seen in 60 mins chart, prices have given a bearish break in rising channel formation which is a negative sign. Prices are now poised to move down till its previous pivot low of 186-182 levels which seems to be a god support level.

From wave perspective, …………………

In short, our bias for BHEL is negative as this stock can move down till 186-182 levels over short term.
BHEL has made a low of 187.50 as of now till 12.47 pm on 3rd April 2014 and can possibly move till our mentioned level in coming trading sessions.





Comments

Post a Comment

Popular posts from this blog

Nifty in Ending Diagonal Pattern?

-
Image
 Nifty Daily chart Analysis Nifty is currently exhibiting a pattern of higher highs and higher lows, indicating a positive trend. While there is no immediate sign of reversal, there are indications suggesting that the current upward momentum may be losing steam. According to the Elliott Wave theory, there are signals suggesting the formation of a distribution pattern, specifically an ending diagonal pattern. However, this pattern is still unfolding, with one leg remaining on the upside, potentially pushing the index to new all-time highs within the range of 22300-22400 levels. Once this leg concludes, there could be a reversal in the trend. In summary, Nifty is anticipated to climb further from its current levels and may reach a new all-time high in the range of 22300-22400. However, after reaching this peak, a reversal could occur, potentially leading the index down to the range of 18000-19000 levels. Join my Telegram Channel :  https://t.me/elliottician1 Join My Twitter handle :  htt
Read more

Gold Anticipated Happned

-
Image
 Gold anticipated on 14th Oct 2023 Gold happened on 28th Nov 2023 Analysis In my prior article, I noted that "Gold prices have the potential to climb higher and may reach the $2025-2030 range in the short to medium term." The yellow metal indeed surged towards $2150 levels, surpassing my projected range of $2025-2030 when it was initially trading at $1933 - the anticipated outcome. To read my previous article on Gold, click on the link below https://www.marketanalysiswithmeghmody.com/2023/10/gold-and-elliott-wave-counts.html Presently, prices are following a flat pattern, having completed wave a of wave b, and this wave b is identified as a flat. The next movement could reach a minimum of 80%, translating to $2090 levels, or it might extend to $2150 levels or beyond. Clear-cut indications point towards prices fluctuating within the $2100-2150 range. Currently, prices are recorded at $2053 levels. To sum up, Gold prices display a positive outlook and are expected to fluctuate
Read more

MCX Crude Oil - Reversal as per Elliott Wave Analysis

-
Image
 MCX Crude Oil 4 hour chart Analysis According to the presented chart, the price movement of crude oil shows a consistent pattern of lower highs and lower lows, suggesting a prevailing negative bias. Notably, there was a recent breach of the previous low following the Crude Oil inventories report, leading to a decline towards the 5787 levels. Despite this, there is a potential for a relief rally or a reversal to occur at the current levels. Examining the Waves perspective, Crude Oil exhibited a three-leg pattern (A-B-C), with wave C concluding at 161.8% of the distance from wave A to wave B, as illustrated in the chart. Within wave C, there are distinct markings of five waves, hinting at the imminent completion of the downtrend. In summary, it is suggested that MX Crude Oil could experience a relief rally or a reversal in the vicinity of these levels, with the potential to test the 7000 levels in the future . Join my Telegram Channel :  https://t.me/elliottician1 Join My Twitter handle
Read more