Monday, October 24, 2016

Biocon: How Channels and Elliott wave can be used to set target levels!

At times combination of these techniques Channel along with Elliott wave can help to capture the trend to the point.

Trading is a systematic activity and for that one needs to understand the market behavior. If the pattern under formation is clear then next trend can be captured with favorable risk reward ratio. For understanding market we apply Elliott wave and other basic technical analysis methods like Channels, Moving averages, RSI. All these indicators provide important support and resistance areas where one should book profit.

Biocon touched our mentioned target of 1020 level exactly on 21st October 2016. We were able to capitalize on up move and prices moved exactly in lines with our expectations. The part of the same is shown below taken from “The Financial Waves Short Term Update”

Biocon 60 mins chart: (Anticipated in the morning of 19th October 2016)

Biocon 60 mins chart: (Happened on 21st October 2016)

(Part of research published in the morning of 19th October 2016)

Wave analysis:

“Prices have continued to move higher however from last one month corrective rally is ongoing. This suggests that minor wave (v) of wave …. is forming Ending Diagonal Pattern and that is why overlapping rally has continued.

As shown in 60 mins chart, stock has bounced back from the blue trendline support and as per pattern also one leg on upside is pending. Move above 972 will suggest that uptrend has resumed towards trendline resistance.

In short, break of 972 will take prices towards 1020 level where red trendine is placed with important support at 930 level.”

Happened: post breaking above 972, prices sustained above important support levels and rallied towards the exact target of 1020 level by 21st October 2016. Post touching our target, prices have now reversed on downside? So what should be the trading strategy from here on?

Trade with objective techniques! Subscribe to “The Financial Waves Short Term Update” which covers Nifty and 3 stocks on daily basis with detailed explanation and key levels one can use to form trading strategy. For subscription to this research report simply visit Pricing Page and get insight into short to medium term outlook on markets and what are the key reversal areas. 

No comments:

Post a Comment