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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