BHEL: Bearish Breakout and Elliott Wave counts

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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.





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