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.

                                     Yes, you heard it right and you will see it after reading this article. A diagonal pattern or a wedge pattern occurs in some fixed waves. This pattern forms when there is a massive distribution or accumulation happening. Nifty often forms diagonal patterns and the post implication is hazardous whether its 2008, 2013, 2014 fall all has diagonal pattern forming. Diagonals are of 2 types one is an Ending diagonal and other is a Leading diagonal. In ending diagonal one of the types is also known as Expanding diagonal. The rise from 5933 till 6869 in Nifty was so fast that majority of analysts thought at every peak that Nifty will reverse and it proved them wrong thus making all time high. Also on daily chart it is quite visible that RSI has started exhibiting negative divergence which suggests that upside momentum is slowing down. Is Nifty sending an SOS signal? Well plotting an Elliott Wave Counts on Nifty it seems that it is sending an S

The   Dow Jones Industrial Average , also called the   Industrial Average , the   Dow Jones , the   Dow Jones Industrial , the   Dow 30 , or simply the   Dow , is a   stock market index , and one of several indices created by   Wall Street Journal editor and   Dow Jones & Company   co-founder   Charles Dow . The   industrial average   was first calculated on May 26, 1896. [1] Currently owned by   S&P Dow Jones Indices , which is majority owned by   McGraw-Hill Financial , it is the most notable of the Dow Averages, of which the first (non-industrial) was first published on February 16, 1885. The averages are named after Dow and one of his business associates, statistician   Edward Jones . It is an index that shows how 30 large   publicly owned   companies based in the   United States   have traded during a   standard trading   session in the   stock market . [3]   It is the second oldest U.S. market index after the   Dow Jones Transportation Average , which was also created

The   Bovespa Index   ( Portuguese :   Índice Bovespa ) is an index of about 50   stocks   that are traded on the   São Paulo Stock, Mercantile & Futures Exchange   (Bovespa:   BO lsa de V alores do   E stado de   S ão   PA ulo). The index is composed by a theoretical portfolio with the stocks that accounted for 80% of the volume traded in the last 12 months and that were traded at least on 80% of the   trading days . It's revised quarterly, in order to keep its representativeness of the volume traded and in average the components of Ibovespa represent 70% of the all the stock value traded. IBOVESPA is an accumulation index. Its index number represents the   present value   of a portfolio begun on 2 January 1968, with a starting value of 100 and taking into account share   price increases   plus the reinvestment of all dividends, subscription rights and bonus stocks received. As per Elliott Wave theory, prices after making the high of 53393 levels in the month o

On 7 th 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