Market Analysis With Megh Mody

USDINR is moving in a rising channel formation from past two years. As per wave analysis impulsive wave cannot move in a rising channel, so only one possibility of corrective pattern opens up which is double corrective or triple corrective pattern. The first corrective pattern which starts from May 2014, has a three wave structure of wave a followed by wave b in a running triangle pattern and wave c in an impulse. The prices then came down in three wave structure to complete wave x. The second corrective wave is again in a tree wave pattern followed by wave x and currently prices are moving in a third corrective which is a possible triangle. If this is a triple corrective pattern it can also be labelled as (w-x-y-x-z). Probable scenarios of triangle: Extracting triangle (ET): In a ET which has five legs in it (a-b-c-d-e), all the major upmoves in the triangle should be smaller than its preceding up move. As of now this rule applies to the current structure. For an ET to c

MCX Nat Gas is moving in a range of 142-145 levels from last two trading sessions as it awaits for its inventories schedule to release today. The previous reading was 68b but the consensus is 60b. Prices are moving in a higher high and higher low formation thus giving a clear indication that the trend is firmly positive. Prices also persist in a rising channel formation which supports the positive direction. The commodity is also trading above both the short term moving averages 20 EMA and 50 SMA, where there is a bullish crossover. From wave perspective, prices are moving higher in a double corrective pattern (as of now). I jumped to this conclusion as it is a channelized move and there can be a breakout of a triangle pattern today. The first wave a started from 109 and ended at 133.80 and wave b was completed in double correction (a-b-c-x-a-b-c) and completed at 126 levels. Wave c ended at 144 and wave x completed in a triangle pattern (a-b-c-d-e). As of now the second corr

Nifty from the low of 6825 in the month February 2016 surged till 7992 on the expiry of April 2016. The broader picture looks to be positive for broader markets but the corrections are always difficult to identify. In below chart, applying combination of basic technical tools and wave theory, it is clearly visible that prices might correct in near term. As per wave theory, one correction is over which might drag Indian equities lower in coming weeks. However, prices are continuously moving in a rising channel formation, break of this channel will open negative possibilities. Stay Ahead of major reversals and don't follow the crowd blindly. Lear Elliott and Neo Wave concepts in our next Webinar session scheduled on 21st and 22nd May 2016. For more queries mail me on meghmody@gmail.com Nifty Daily chart

MCX Copper tumbled till 306 levels from the top of 343 levels. On 12th April prices showed resilience and retraced faster giving an indication of reversal. From wave perspective, prices are moving in a flat pattern (3-3-5). Where a was completed at 343.40 and wave b which retraced more than 61.8%, completed at 306. It can be said now that wave c of flat pattern has started and can move near till 343 levels. In short, expect MCX Copper to reach till 340-343 levels over short term. MCX Copper 1st month Contract (daily)

From the daily chart of IDFC, prices consolidate before the mammoth move till 43. Prices are moving in a declining channel but the stock was near the support of the channel thus indicating a short term bounce. From Wave perspective, prices completed  the last leg of a complex correction wave y. In wave y it completed diametric pattern and started a new leg on the upside. IDFC Daily Chart The next tutorial for Elliott Wave and Neo wave concepts will be scheduled on 23rd and 24th April 2016. This will be a webinar set for two days 6 hours each. The course fee will be 6000/- for two days. Requirement for Webinar w ill be Team Viewer 7, Yahoo messenger and Headphone and Mic. Interested candidate can mail me for further details on meghmody@gmail.com

EURINR is moving in a positive direction after forming a bottom of 65.74 on 13 th April 2015. As of now prices are moving in stiff range of 74-77 levels. Currently the pair is protecting the level of 74 and can move closer till 76.70-77 levels over short term. Faster retracement from the top will give first indication of a reversal, followed by breaking of 74. A sustainable move below 74 will open the possibility of 69-70 levels over medium term (2-3 months). From wave perspective, EURINR is moving in a diametric pattern, which has seven legs in it (a-b-c-d-e-f-g). Diametric formation is a complex structure which is difficult to identify, as at first it will look like a expanding triangle and then it will form contraction. Currently EURINR is in the last leg of diametric pattern which is wave “g”. This wave is corrective in nature though it can also form more complex structure going ahead. To conclude, EURINR is expected to move higher closer to 76.80-77 levels in near term

The next tutorial for Elliott Wave and Neo wave concepts will be scheduled on 23rd and 24th April 2016. This will be a webinar set for two days 6 hours each. The course fee will be 6000/- for two days. Requirement for Webinar w ill be Team Viewer 7, Yahoo messenger and Headphone and Mic. Interested candidate can mail me for further details on meghmody@gmail.com