Monday, November 25, 2013

Punjab National Bank: Applying Elliott wave, channeling technique and RSI!

The below research is by Waves Strategy Advisors. For more information visit
Since start of November, 2013 we have witnessed lot of volatility in Indian markets.
The up move was mainly led by specific sectors participation. During this kind of market, it becomes necessary to do the sector specific analysis, so that one can trade better.
We observed one of the good up move in Punjab national bank from mid to start of October, 2013. Many participants were expecting higher levels as market was on verge of taking out 2008 high. However, Elliott wave counts, channeling technique and RSI suggested that prices are in matured stage of up move and downside is possible. Hence, we published PNB Research in “The Financial Waves STU” dated 6th November, 2013.
The below is the anticipated and happened move on PNB:
PNB 120 minschart:Anticipated on 6th November, 2013 when prices were trading at 600 levels
PNB Bank 120 minschart: Happened on 12th November, 2013
The part of Research which we published on 20th November 2013:
We have mentioned in the previous update of 6th November 2013, “Considering channel resistance on daily and 120 mins chart, 38.2% retracement level and momentum indicatorRSI we expect that wave (c) is in mature stage and very soon it can turn on downside. Negative confirmation will be obtained below 565 levels. Any move below 565 will take prices lower towards 520/510 level.” Bang on!!
PNB moved in lines with our expectation and achieved our both mentioned target on 13thNovember. Later on prices bounced back from the channel support and moving higher.
As shown in daily chart, September month was trend changer for many of the stocks. In the month of September 2013, prices have bounced back from lower end of the red channel and formed higher highs and higher lows pattern.
As per wave perspective, the ongoing channelized move suggests that stock is moving in the form of double zigzag correction….
As shown in 120 mins chart, from the start of 2013 till end of August 2013 prices traded below 100 days simple moving average and showed underperformance. However,…
In today morning trade, PSU Bank Index was up by almost 2.5%, on other side PNB is consolidating above the channel, so will it resume upside again or downside is possible? To get the answer, subscribe to the The Financial wave STU in which we publish Daily Nifty research and 3 stocks with short term trading opportunity. For subscription visit the following link: or Contact Us

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