Reliance Capital: Anticipated Happened
On 7th
March we anticipated that Reliance Capital will move till 377-380 levels, we
had also mentioned that it will take few months to reach this level.
Below is the excerpt
of this ADAG stock where we had mentioned the target level when the stock was
quoting at 329 levels.
We are aware that
prices has given a bullish break in falling red channel pattern which is
visible on the charts, we are also aware that there is a positive divergence
which is marked by blue line. All this factors suggests that the trend is
changing from negative to positive.
We have also used
Retracements and Projections to find out the possible target for this stock.
Wave b of the second correction has taken the support of 80% Fibonacci
retracement of the previous up move (289-407). Which clearly suggests that wave
b of the second correction is in flat pattern. By knowing which pattern it has
formed now it is easy to forecast the future price for this stock by using
Fibonacci projections.
By applying this,
resistance zone comes to around 377-380 levels for this stock which is very
near to its upper extreme of the range which is 390 levels.
Combining Elliott
wave analysis and Fibonacci Retracements and Projections it is always easy to
find out the desired target or resistance zone for a particular asset class. It
is advisable not to follow the crowd blindly, but use objective techniques.
On 21st of
April 2014 prices made a high of 387.40 thus achieving our mentioned range of
377-380 and also the upper extreme of the range which is 390.
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