Thursday, March 15, 2012

Suzlon: A journey of 96% fall!

The Financial Edge short term update, is a flagship product of Waves Capital and this report applies Time Cycles, Elliott Waves, Price ROC, other Technical indicators on Nifty and other 3 stocks where we seeing developing opportunity. Write to us on to subscribe NOW to see what lies ahead for Indian markets!

Suzlon Weekly chart:

Wave analysis:
This excerpt is picked from Financial Edge short term update report published on 13th March 2012.

Suzlon weekly log chart shows a steep fall from the level of 450 in Jan 2008 to 33 in March 2009. The entire down move was impulsive and can be counted as 5 waves. The rally since then has been in complex corrective fashion in the form of W-X-Y and we probably ended wave (B) at 56.

From 56 level prices fell steeply towards 17.20 levels in the form of impulse wave. It is difficult to conclude now if we have completed entire wave C at the low on 7th Jan 2012 or this was just wave i of C. The latter suggest there are more down waves pending and prices can come down to as low as single digits. However if we have ended entire wave C at 17.20, it will indicate the correction from the top at 450 to the bottom at 17.20 is complete and years long bear trend has come to an end. Complete retracement of wave C i.e. a move above 56 will confirm this scenario.

Prices are now lying at crucial resistance level near 34 which is also wave (A) low made in 2009. A break above this can take prices towards upper channel resistance at 43 – 44 from a month horizon.

From medium to long term perspective, we will observe if prices move above 56, it will indicate strong leg up has started and secular trend will then change from down to up. A move back below 17.20 will indicate bear trend in full force and prices can come down in single digits.

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