Market Analysis With Megh Mody

On 19 th March 2014 we had published an article on FTSE 100: Triple Correction and Forecasting where we had mentioned the levels for this index and had done forecasting. The reason why we had shown the forecasting is to make people believe that Elliott Wave not only works for short time frame but also works on long term perspective. In this article we had mentioned “ From the below daily chart of FTSE 100, we can see that prices are moving precisely in an upward sloping blue channel. Recently it has bounced from the support of the channel and also there is a time cycle of 15 days which has been working very well to catch the possible top and bottom. Prices are arriving near the time cycle which is on 20 th   March 2014 and also it has shown a reversal sign which is positive for this index. Momentum indicator RSI has also bounced from the support of level 30. This is a very good level as it has earlier bounced from this level (marked by blue arrows). As per wave theory, prices

EUR/USD is one of the most watched and traded currency pair. From December 2013 till May 214 this currency pair has moved in a range of 1.35-1.40 with less movement. Normally when such movement occurs one need to understand that the asset class is under pattern formation. From the below daily chart, it is very clear that prices are moving up in a rising channel formation. The pair reversed from the resistance of the channel which opens negative possibilities. Even prices have given a bearish break in a rising wedge pattern which clearly indicates that EURO against DOLLAR is going to depreciate further. As per wave perspective, prices are moving in a triple corrective pattern (a-b-c-x-a-b-c-x-a-b-c) from July 2012 to May 2014. After completing 2 nd wave x at 1.31 in a simple zigzag pattern, prices then moved up and completed wave a at 1.3832 followed by wave b in a simple zigzag at 1.3304 and wave c which was an ending diagonal pattern was completed at 1.3993 after the statem

Hang Seng was losing its gains after a significant up move from 21137 to 23224. The fall from 23224 to 21680 was a double correction pattern (a-b-c-x-a-b-c), prior to this fall the up move from 21137 to 23224 was a impulsive up move which we have counted wave i (marked on daily chart). Wave ii will be corrective in nature and it seems that wave ii got completed at 21680 levels as it has arrived till 76.2% retracement of the previous up move (21137-23224). Now Hang Seng will start picking up momentum and can move up till 24000 levels which is more than 100% of the previous wave i. This up move will start wave 3 which is strongest, longest and broadest. In short, our bias for Hang Seng is firmly positive as it can move up till 24000 levels in coming weeks.