Market Analysis With Megh Mody

The BEL20  is the benchmark  stock market index  of  Euronext Brussels . In general, the index consists of a minimum of 10 and a maximum of 20 companies traded at the  Brussels Stock Exchange . Since 20 June 2011, the BEL20 has contained 20 listings. The index was moving in a positive direction forming a higher high and higher low formation but RSI which is a momentum indicator has started exhibiting negative divergence which suggests that momentum on the upside was slowing down. Prices are moving in an upward sloping blue channel and can move down to test the support of the channel which is near 3000 levels. Breach of 3000 levels will infuse further selling pressure. As per wave perspective, prices were moving in an impulse upmove from December 2013 and made 5 wave structure. The high was 3154, thereafter it started moving in a negative direction. The current downmove is corrective in nature. In short, BEL 20 can move down further and can test 3000 levels over short t

In our previous article dated on 30th March 2014 we had mentioned that, “News always comes after prices have given a breakout and has started moving up which is very difficult for traders and investors to capture. To eradicate this problem it is necessary to use technical analysis and Elliott Wave theory to know the possible reversal before the news arrived. By using Elliott wave theory  one can capture not only the reversal but also can forecast which is been shown in the below daily chart. ” Prices move exactly as anticipated which is shown in the below daily chart

After the recent selloff, this currency pair seems to be moving in the north direction with lot of strength. Whenever, such sideways to positive movements happen after significant fall, one n eed to understand that the asset class is making a basing formation for the next leg. In the below daily chart of US Dollar British Pound, we have also used ADX to measure the trend for this pair along with that we have shown Elliott Wave Counts. We can observe from the chart is, prices were moving precisely in a downward sloping red channel, but there was a bullish breakout in falling channel formation in the month of March 2014 which opens positive possibilities. After that prices came down and took the support of the trend line and have managed to bounce back. Trading in the direction of a strong trend reduces risk and increases profit potential. The average directional index (ADX) is used to determine when price is trending strongly. In many cases, it is the ultimate trend indicator. After al

Yes, you heard it right by comparing 2 main indices you can know what will be the next trend for the Indian Equity Markets. By comparing Nifty with Bank Nifty we found out some facts which signal some shocking revelations. Indian Equity Markets has picked up tremendous pace from past 2 months due the major event lined up (election). Now the question arise how far this euphoria sustain? Well many stock market participants are now turned extremely bullish and are coming with targets of 7500-7800 for Nifty. We will take this as a negative signal as when crowd thinks in one way, markets attune to give a different conclusion. Lets come back to the comparison, Nifty has made a all time high of 6776 which was made on 3 rd Of April 2014, but Bank Nifty has not even managed to cross its previous high of 13281 which was made in 2013, this is a classical negative divergence between two indices which suggest that it is implicit to be cautiously positive at current juncture. We

The Australian Securities Exchange (ASX) is Australia's primary  securities exchange . It was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. Today, ASX has an average daily turnover of $4.685 billion and a market capitalisation of around A$1.4 trillion, making it one of the world's top-10 listed exchange groups, comparable to the  New York Stock Exchange ,  London Stock Exchange  and  Deutsche. Elliott Wave Analysis has always helped to know the forthcoming trend in any asset class and that is why it is world renowned theory. We have applied this theory in ASX to know what is next for this index. Using Elliott Wave and other technical indicators like moving averages, MACD etc with technical tools like channels, retracements helps to know the possible support and resistance levels.  In the below daily chart of ASX, the index is moving up precisely in an upward sloping blue channel which is positive sign. The f

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

Crude oil has been very volatile after making low in November 2013. Prices then started to move in a very big range of 6500-5980 levels. Using Elliott wave analysis we came with a view that there is still a big possibility that Crude oil will still respect this range or this range will contract as time passes by. From the below daily chart we have used Elliott Wave analysis to identify the next possible move in Crude oil. As we had mentioned that it is moving in a range, prices has bounced from the lower end of the extreme and can move up from current levels. Again the entire month of March it consolidated in a very stiff range and has probably started the up move. Price ROC has also moved above the equilibrium i.e 0 which opens positive possibilities. As per Elliott wave theory, prices are moving in a corrective form where it has completed ……….. In short, …………………………….