Monday, November 28, 2016

Bank of India: Application of Elliott wave, Channels, Moving average

Bank of India had been a major dragger for many years within the PSU banking space. Below article explains Application of Elliott wave, Channels along with Moving average and other technical analysis studies.

Below research is picked up from “The Financial Waves short term update” dated 25th November 2016 which contains detailed technical analysis on Nifty, Bank Nifty, stocks.

Bank of India weekly chart:

Bank of India daily chart:

Bank of India 60 mins chart:

Wave analysis:

Bank of India has moved higher from 80 to 130 levels over past few months however long term chart suggest that this stock is in long term down trend and up move witnessed in current year is only the retracement of the prior down move.

The weekly chart since 2010 indicates that intermediate wave Y is ongoing which is forming Triple standard correction pattern. The bounce back witnessed from 80 level in start of 2016 is slow and corrective in nature which suggests that another wave (x) is ongoing. Hence one should be cautious before investing in PSU banks and should have strict stop loss. From medium term perspective, stock has resistance at 150 level which is also coinciding with black channel resistance.

As shown in daily chart, prices are forming complex correction pattern since the low made near 80 level. From the start of November 2016 minute wave z is ongoing which looks to be subdividing further.

As shown in 60 mins chart, post the steep rise from 100 to 130 levels price are showing corrective down move. This indicates that wave b (red color) is ongoing. In last session recovery was witnessed but move above …… is required to start the up move.
In short, …………..

Subscribe NOW to “The Financial Waves short term update” and see yourself why we cautioned our clients about reversal from 7900 support zone when majority were expecting a move towards 7500 on Nifty with detailed application of Elliott wave charts and other studies. Visit Pricing Page and get your copy of the research now!

Friday, November 25, 2016

Video update: How to trade Nifty using Trendlines and Indicators?

The above video explains outlook on Nifty using Bollinger Bands(r) parallel trendline concepts and other key reversal support and resistance areas.



#ElliottWave news channel is a short video series. Ashish Kyal of http://www.wavesstrategy.com/  will be going live weekly at 4 pm every Friday. Stay tuned to know the current technical state of markets and learn more on advanced concepts of Elliott wave, #Neowave and #TimeCycles.

Thursday, November 24, 2016

Nifty applying Bollinger Bands® with Elliott wave for support, resistance reversal areas




Below article explains application of Bollinger Bands along with Elliott wave and channeling concepts on Nifty.

Indian Equity Markets has reacted negatively in last few weeks post the announcement of Demonetization by Government. Nifty has moved lower from 8598 to 7915 level till now and arrived near the BREXIT low which was created in the month of June 2016.

In current week there is less volatility and during the same time Bollinger Bands technique works well to identify important support and resistance levels. In the below 60 mins chart we can see that during the volatile move Bollinger Bands expands whereas during the sideways market it contracts.

Nifty 60 mins chart: (Research taken from todays The Financial Waves Short Term Update)






















(Part of research taken from todays The Financial Waves Short Term Update)

Wave analysis:

“During sideways market, Bollinger Bands provide good support and resistance levels. Prices are now near the upper end of the Bollinger bands and the lower end of the band is at 7920 which is close to the previous pivot low formed two days back. 8105 is also the level of previous wave x and so strong momentum above it is required for retracement of the down move but unless that happens we can expect range bound movement between 8100 and 7920. Today being the expiry of the eventful month and sharp fall of past few days’ volatility can be expected in second half of the trading session.

From wave perspective we are currently in wave … of second correction pattern which is either forming a Triangle or a Flat correction as mentioned in earlier update. Post completion of this wave .. we can expect a retest of the earlier lows in form of wave …. Also normally important lows are formed on back of positive divergences. There is no such divergence on daily or hourly chart and this is another reason why we expect retest of lower levels again.

In short, Nifty can continue to consolidate within the mentioned range. Trading strategy should be selling near resistance and buying near supports with strict stoploss to capitalize on the consolidation.”

To know the short to medium term Elliott wave counts on Nifty as well as important reversal areas, subscribe to “The Financial Waves Short Term Update” which covers Nifty and 3 stocks on daily basis. For subscription options visit Pricing Page





Tuesday, November 22, 2016

Nifty flirting around 8000 levels! Applying parallel trendline concept and Elliott wave!

Below research is picked up from "The Financial Waves short term update" by Waves Strategy Advisors - www.wavesstrategy.com To subscribe to daily research report visit the website.

Nifty daily chart:

Nifty 60 mins chart:

Wave analysis:

In the previous update we mentioned that, “In short, Nifty continues to drift lower in last session. It is only on move above 8150 followed by 8210 will suggest positivity however any break of 8030-8000 zone will lead to panic selling”

Nifty opened near 8100 levels but only to enter into red territory immediately. Selling pressure continued to build up throughout the day and majority of stocks along with high beta Midcap and Smallcap sectors ended in deep red territory. It is prudent to avoid catching a low in such market unless and until we see decisive close above the previous day high.

Nifty has now broken the psychological level of 8000 as well. This time the fall has happened after breaking the downward sloping channel on downside which was also on back of the event on 9th November. On the same day there was sharp positive retracement and Nifty touched 8600 the next day on 10th. Post that the strong selling pressure started building up. Such high volatile swings result into tricky trading environment which we are witnessing now, especially when the global markets are stable and US markets have been touching new life time highs. It is not very often to see such wide divergence between Indian equities compared to global markets. Nevertheless, during such scenarios one needs to wait for close above previous day’s high for some indication that there is a pause or atleast temporary halt in the selling pressure. In the entire down leg from 8600 there is not a single close above the previous day’s high.

We are showing parallel red channels on the daily chart which has provided support during the spike low of 8002 on 9th November. The problem is there is no major downward sloping channel and so we need to make use of parallel trendlines to identify the important support zone. 7925 was also the level created on the day of BREXIT event. Such spike lows are important and if Nifty continues to move below 7900 then the next parallel trendline support near 7600 will open up.

As shown on hourly chart, the fall from 8600 looks to be in double corrective pattern with wave a of second correction currently ongoing. During this entire trend 15 period Exponential Moving average has worked very well as resistance and we have not seen decisive hourly close above this average all the while. Also for any positivity we need to see break above the red trendline along with faster retracement above 8105. Unless that happens the short term trend will remain negative.

In short, trend for Nifty is negative as prices have closed below psychological level of 8000. Further negative close below 7900 will open up more downside possibilities. Immediate move above 8000 is required to hint towards atleast a pause in the downtrend with 8105 as important resistance on upside.

For daily update along with detailed Elliott wave counts on Nifty, Bank Nifty, Stocks, “The Financial Waves short term update” with short to medium term outlook and key reversal areas. For more details visit Pricing Page.

Friday, November 11, 2016

Video: Nifty, Are you stuck? What is Next?



#ElliottWave news channel is a short video series. Ashish Kyal of http://www.wavesstrategy.com/  will be going live weekly at 4 pm every Friday. Stay tuned to know the current technical state of markets and learn more on advanced concepts of Elliott wave, #Neowave and #TimeCycles.