Tuesday, July 9, 2019

Maruti: How far will it fall?

Maruti once was among the top performing stocks in the Auto sector but post making a high near 9929 levels in July 2018, the stock failed to sustain and witnessed a sharp fall failing to show any recovery.
An important support zone near 6300 levels was seen but the same has been now broken decisively. Auto stocks have failed to show any recovery and the rallies have been short lived.
Below is the chart with detailed analysis and the move witnessed has been in sync with our counts.
Maruti Daily Chart:


Maruti witnessed a sharp fall from the high of 9929 levels till 6440. Prices traded near the zone of 6300 – 6440 for many months but this is now given away over past two days. The same zone which acted as support will now act as strong resistance. So unless we see move back above 6440 levels the outlook for the stock will remain bearish.
In the last session prices finally managed to break below the support on closing basis and since then has been moving lower and lower. Now as long as we do not see a faster retracement of the fall the trend would remain negative.
This simply shows how amazing simple horizontal support or resistance works and it can help in capturing reversals just by using such simple techniques.
From wave perspective, prices are currently moving in wave iii of (c) which might be forming an Ending diagonal pattern. It will be only post completion of 5 waves down we can see recovery in this stock. The stock has now corrected nearly 40% from its life time high levels of 10000 and we will hint it in our daily research once a faster retracement back above important resistance level is seen.
We have been publishing about this stock with detailed analysis in our daily equity research report published under the name “The Financial Waves STU”. Subscribe for the report and get daily updates of Nifty with three stocks before market opens and make the most of it. Get access here
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Thursday, June 20, 2019

Reliance Capital – Ichimoku Cloud, amazing channels, Trade setup!

ADAG group stocks showed strong reversal on upside along with Nifty. It seems that Nifty after forming a topping Head & Shoulder pattern at the top achieved the target of the Shoulder near 11625 and reversed back on upside. We are seeing short covering and fresh long build ups.
It is amazing to see how certain stocks like Reliance Cap, Reliance Power, Reliance Infra are moving. Only if you have the risk appetite you can trade in these stocks. But see the application of Ichimoku cloud along with channels which worked out amazingly well.
Reliance Capital had showed a correction of more than 70% in just few months. Despite everyone believing that the stock is driven by news or events or rather operator it has been following channels simply beautifully.
Reliance capital hourly chart:

Low made by this stock was precisely at the lower end of the channel from where we saw a huge bounce back. This proves that nothing else but the collective thought process and crowd psychology is moving the market.
Also the stock continued to provide shorting opportunity everytime it touched the red base line and now it has finally managed to decisively break above the same. This hints that the low for the stock might be in place and we should start seeing recovery eventually.
Again, only a trader with high risk appetite should enter in these type of stocks with thorough research and analysis.
So, you still think the stocks are moved by news or events! Think again!!!
You can subscribe to “The Financial Waves short term update” and see various stocks along with different technical tools, Ichimoku Cloud, Elliott wave methods. Get access here
As Nifty looks to be reversing back on upside there are opportunities again for momentum stocks. We have published today a momentum pick which has great potential and is about to give a breakout. Get access to the latest momentum stocks here
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Monday, June 17, 2019

Did Nifty form topping Head & Shoulder pattern? What are the targets?

Did Nifty form topping Head & Shoulder pattern? What are the targets?

Nifty has decisively broken below the level of 11770 as of now and trading much below that. Today’s closing is going to be important as we can see break below the important topping Head & Shoulder pattern

We believe in combining orthodox technical analysis method along with Elliott wave patterns and combined whatever is working in the market for high conviction trade setup.

Nifty is exhibiting fractal nature with forming Head & Shoulder pattern similar to that seen during the previous tops as well.

Below is the chart, picked up from daily research report “The Financial Wavesshort term update”
 
Nifty 60 mins chart: (published in morning on 17th June 2019 before markets opened)

Wave analysis:

Following was published in morning before equity markets opened

In Friday’s session Nifty witnessed a flat opening after which it moved lower for the first hour and later moved sideways for the remaining part of the session. It was only during the last half an hour where prices witnessed a sudden fall of nearly 76 points and closed near the days’ low. The past few sessions have been witnessing continuous deterioration in the market breadth and similarly on Friday the breadth weakened further with only 797 advances as against 1725 declines. Banknifty which has been a leader during the beginning of the fall broke its important support as well closed below the same in the last session. It looks like the banking index has once again taken the lead and might be indicating towards the coming of the catastrophic fall.

View my latest webinar on Nifty: Is it headed for a crash!

The daily chart shows that, (shown in actual equity research report)

As shown on hourly chart, the move looks very similar to that seen April. The entire distribution looks like a topping Head and Shoulder pattern which was also the case in April 2019. Now the neckline is placed near 11770 and the short term trendline support is already broken. Above that Bank Nifty has broken the entire range on downside and closed below it. Today’s movement is going to be crucial. If we are reading the pattern correctly then break below the Head & Shoulder pattern will give the target of ……… on downside which is also near the Gap area and the blue channel support. It is time to be cautious because selling is seen across the space with companies defaulting. The entire pressure is yet to be seen on the PSU banking space which has been the major financers to the debt ridden companies. This is also the reason why RBI has been consecutively reducing the interest rates which is not hinting towards positive sign. Stock market has sustained at elevated levels with PE ratio near 30 again from long term perspective this is a dangerous sign.

Case in point: if we break below 11770 and broader selloff intensifies it can result into serious capitulation that majority are still ignoring….

In short, …close below 11770 will result into first target level of ……… or probably lower. Any move back above 11900 will indicate a false break on downside and can lead to sudden positive reversal. So trade cautiously based on levels mentioned.

Nifty has so far continued to trade exactly as per the pattern under consideration and mentioned in the daily equity research report. We cannot be more accurate in identifying patterns and combining them along with Elliott wave. You can get access to the daily and monthly research reports and see yourself where are we headed and how far will the stocks collapse. There are amazing opportunities on daily basis and you can also get access to Intraday advisory on Nifty and stocks and receive equity research free along with it. Get access here

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Friday, June 14, 2019

Nifty: Is it headed for a crash! (14th June 2019)

#Nifty closed the week near the lows and is on verge of giving a breakdown. Keep watch on support levels near 11770. Learn right from basics to the most advanced concepts of technical analysis, know more https://www.wavesstrategy.com/become-market-wizard-bmw-build-your-career-towards-full-time-expert-trader/