Showing posts from May, 2015

MCX Copper in Double Correction

 MCX Copper continuous hourly chart From the above chart, the red metal is moving in a lower high and lower low formation and it is precisely moving in a falling channel Recently the metal faced the resistance of the channel and has broken the support today which opens further negative possibilities. As per wave theory, prices are moving in double correction pattern as per the chart (a-b-c-x-a-b-c) After completing first correction, prices formed wave x close to 740 levels and now since all the important supports are broken it is very much evident that prices are poised to falter and can move below its previous low in form of wave a of second correction. The summation is prices are poised to plunge near till 680-670 levels as far as 733 is intact on the upside.

Bharti Airtel: Ending Diagonal Formation

Bharti Airtel made a 52 week high of 435 levels but in last half an hour of trade the stock lost its shine and started moving lower. It closed at 425 levels after the weighted average.  There is a high possibility that the stock is moving in wedge pattern. The wedge pattern or ending diagonal pattern has five waves in it. In each five waves there are three waves which is corrective in nature (a-b-c), taking alteration into consideration. After the five waves are done it will reverse. In this case it is certain that Bharti has completed five waves and will possibly turn from hereon. On the lower side prices can moved down till 380 levels or even lower in near term or probably in June 2015 series. Bharti Airtel Daily Chart

DLF: Neo wave Diametric and 5th failure terminal

Neo wave is the advance version of Elliott wave, the founder of this wave Glenn Neely has come out with additional patterns which were not in the major works of R. N Elliott. The contracting diametric and the 5th failure terminal pattern is found in DLF which is shown below. In a diametric formation there are two types one is contracting (bow and tie) and expanding. In this case we witness contracting formation which has seven legs (a-b-c-d-e-f-g). In the 5th failure terminal the third wave is the longest and the 5th wave fails to move above wave three. From the mid of 2013 DLF was forming a diametric formation and it completed wave g near 180 levels. Prices completed wave a of wave (a) at 180 levels. It then formed wave b of wave (a) near 140 levels, after that it rallied till 230 levels in the form of wave c of wave (a). Wave (b) was seems to be a complex correction and ended at 100 levels. Wave (c) was a 5th failure terminal and was completed at 165 levels. Currently it is movi