Tuesday, January 30, 2018

Is it time to switch trading to currency from equities?

From trading perspective the first and foremost thing to identify is a trending move. We have seen sharp rise in equity markets over past few days but it has now arrived at crucial juncture. On contrary, currency pairs like EURINR, GBPINR, JPYINR have shown a very sharp positive reversal after a long time. Is it just starting a trend?

The best strategy a trader should adopt is to be open to trade anything that provides good setup. With the help of Elliott wave we can gauge the maturity of trend and one should enter into it when the trend is just starting to make the most out of the move. If prices look to be in matured stages of up move it is prudent to leave that asset and identify other assets where the trending move is in nascent stages.

Look at the below charts of currency picked up from “The Forex waves update” and see yourself a trend in nascent stage. It is time to jump the ship!

EURINR 60 mins chart:

GBPINR 60 mins Chart:

Look at the above two charts of EURINR and GBPINR that showed strong impulsive rise. Also prices are breaking above the multi-year resistance levels. These levels were protected in entire of 2017 and we are just breaking it on upside. The daily charts are shown in our Forex research report which is published on alternate days.

I strongly believe it is time to switch the asset class you are trading. Equity has shown a strong run up and is now maturing with increase in volatility and on other side currency is probably just starting a strong trend.

Subscribe now to “The Forex waves short term update” and see yourself how to trade USDINR, GBPINR, JPYINR and EURINR from here on. Subscribe here

Workshop on becoming from novice trader to an expert trader using basic and advanced concepts of technical analysis – Elliott wave, Neo wave and Hurst’s Time cycles. Register now and avail early bird offer along with free research and training CDs well before the actual workshop. Know more here

Monday, January 29, 2018

Stock tips and trades to win CNBC TV18 Bull’s Eye trade show

Below is the Intraday stock tips that helped me to win CNBC TV18 Bull’s Eye stock trading show that too with a commendable margin.

Nifty touching new life time high in past week but not all stocks participated. This resulted into other contestants on negative side even when they were long on stocks throughout the week. Stock selection is very important and we managed to gain 6.14% that too in a week itself.

Nifty move from 22nd Jan to 25th Jan: The markets are touching unchartered territory everyday and the investors / traders are overly bullish so it is important to stay in the direction of the trend which is up. Keeping this in mind, I’ve preferred to give stocks on the buy side throughout the week. We ended on the winning side on the CNBC Trade show as the stocks were selected based on their strong outperformance and previous day’s close. How? Let us have look on what were the strategies followed to maintain our consistency to manage 6.14% returns in a week on the amount of Rs. 400000

The most important thing that I personally follow is to understand the direction of major index before stock selection on each day. This helped me to gauge out of 4 stocks to pick daily, how many we need to have on the buy or sell side. Since the trend for Nifty was positive throughout the week I refrained from giving any short calls.

Notional amount of 400,000 was given that has to be spread across 4 different stocks on daily basis.
22nd January 2018 trades: Stock tips – Buy Almbic Ltd, Biocon, Godrej Consumer products, Jubilant food.

Alembic Ltd, Biocon and Godrej CP were all up by more than 8% in single day. This was the major driver in single day. The stocks were selected based on their impulsive nature. Alembic was on verge of starting wave v on upside and we have seen strong rise during the start of the waves in this stock. On the other hand Biocon was already in 5th wave and subdividing. We also covered this stock in our daily Equity research reports which clearly showed that Biocon has broken above important resistance and should give a vertical rise which indeed happen.

23rd January trades:  Stock tips – Buy Godrej Properties, Delta Corp, NIITech, Biocon.

Nifty had a strong positive closing in previous session and thus we maintained our strategy to keep all 4 stocks in buy On second day once again I selected Delta Corp because it started the 3rd wave over short term breakout.  IT stocks started showing strong outperformance and so we selected NIIT Tech as it started the 3rd wave. If you look at the stock even now it has been on an exponential rise. This clearly suggests that the cycle have turned for Tech or IT stocks and so we preferred keeping atleast one such stock in the portfolio.

24th January trades: Stock tips – Buy GHCL, M&MFin, Havels, Mindtree.

As mentioned above since IT stocks gave a strong breakout we picked up Mindtree which was giving a positive breakout, GHCL was preferred as it formed a big daily candle and bounced back from short term channel support.

25th January trades: Stock tips – Buy KPIT, Lupin, Godrej Consumer products, GHCL.

Nifty showed some pause on 24th Jan and so we thought of playing it safe. This was the reason we selected Lupin from Pharma and Godrej Consumer from FMCG space. Midcap and Smallcap indices showed a pause and so we picked one index stock to act as a stabilizer.

Overall, I managed to go long on IT, Pharma and outperforming stocks on most of the occasions which helped me close positive for the entire week by 6.14% when the other contestants closed in red.

The above strategy clearly highlights the fact that knowing the internal Elliott wave pattern of individual stocks along with Nifty direction is extremely important. It is not necessary that you will make money by simply being long on any stocks in the current market. Stock selection based on Moving averages, Channels, Elliott wave and much more is required.

Learn the detailed process of Stock selection, Portfolio creation, Intraday trade setups using above methods. The above is a proof of how brilliantly the techniques work. I will be discussing in detail all of these methods – how to buy in morning and sell in evening to how to create portfolio of stocks for investments. More details about the upcoming training click here

Tuesday, January 23, 2018

How to trade Gold impulse pattern – A classic chart?

MCX Gold has shown sharp rally from the lows of 28100 and prices touched high above 29800 levels. This sharp up move was in less than a month. It clearly shows power of Elliott wave impulse pattern.
The below chart is picked up from “The Commodity waves short term update”
MCX Gold Feb 60 mins chart:

Wave analysis:
In previous update for Gold we mentioned that “overall Gold trend is positive as long as lower level trendline is protected near 29500. One can hold their position for move towards 29950 levels.” BANG ON!
Gold has managed to move higher despite of other metals not moving in any direction. It is interesting to see outperformance in Gold whereas Silver has been drifting lower. ….As shown on hourly chart, Gold has been behaving within the impulsive rise very well. We captured this rise very early on and still able to anticipate a positive reversal from the channel support. As shown on above chart, Gold is respecting the 20 period moving average as well. So as long as this average is protected the overall trend will remain bullish.
In short, Gold can move towards …….. levels as mentioned in earlier update with ……. as very important support. ………….. ideal strategy.
The above simply shows power of Impulse pattern and we have been able to capture the same for Copper few days back and now even on Gold during the entire rise. It shows how easily you can trade once you are riding the impulsive trend. So what is next for commodities from here? Subscribe NOW to “The Commodity waves STU” and see yourself detailed analysis on Gold, Silver, Crude and Copper…Visit Pricing page

Friday, January 12, 2018

How to trade Nifty ahead of Budget 2018? Elliott wave outlook!

Nifty has been touching new life time highs and has now arrived at the trendline resistance.
Will it break above from here? know Elliott wave research with charts at 
https://www.wavesstrategy.com. 
I will be conducting two days training on Elliott wave, Neo wave, Time cycles. To register contact on +91 9920422202 or helpdesk@wavesstrategy.com

Wednesday, January 10, 2018

Nifty: How to determine price strength using Bar technique?

Nifty has been closing at life time high levels but have you seen a single candle giving a close of more than 100 points? Think again! Technical analysis methods do not always revolve around only looking at indicators like RSI, ROC or Moving averages. There is much more to it.
See below a very different way of looking at momentum.
Nifty daily chart: published today morning in daily research report

Bar technique - A very important observation is if you look at the close of Nifty since 7th of December 2017 there has been not a single day where prices closed with gain of more than 100 points. Also this was seen last only on 7th December which was reversing the earlier short term downtrend. Forget about the close, the difference between high and previous close has also been less than 100 points except that on 18th December which was Gujarat Election outcome day. On 18th as well prices closed mere 60 points higher than previous day. So, when everything is so euphoric Nifty has been simply lacking the required momentum even now.

Another important fact - over past 22 trading days on an average daily basis Nifty has gained mere 16 points. So, after completing wave …….. near the lows prices have simply failed to keep up with euphoria in wave ………. This is typical property during last legs that creates enough euphoria but prices only drift without strong bar formation. Nevertheless, we will see if Nifty manages to give a close of more than 100 points which will precursor for current rally extension as it approaches near important trendline resistance.

In short, move above ……… will keep short term tone positive which can drift prices ……………

The above research is picked up from “The Financial Waves short term update” our flagship product that covers detailed Elliott wave analysis with trade setup on Nifty, Bank Nifty, stocks using various different methods. Subscribe Now

Attend one of the most advanced training on Technical analysis – Advanced Elliott wave, Neo wave, Time cycles and how it can be extended to Equity, Commodity, Currency and Bitcoins. For more details Contact us

Friday, January 5, 2018

Thursday, January 4, 2018

Power of Impulse pattern – Gold, Silver, Crude & Copper!

The below charts show power of impulsive pattern across the commodities – Gold, Silver, Crude and Copper.Many are fixated upon movement of equity markets which has been subdued since the start of New Year whereas commodity has been providing ample opportunities on the long side.
We have seen strong trending moves in Base metalsEnergy pack and Precious metals as well. See the below charts of different commodities published in today’s morning research report – The Commodity Waves short term update.
See how easy it is to trade an impulsive trend if you are placed the right direction. You might refer our previous articles on Copper and other metals as well where we captured the entire up move and we turned bearish post wave v completion which helped to capitalize on the past few days of correction as well.
MCX Gold 60 minutes chart:

MCX Silver 60 minutes chart:

MCX Crudeoil 60 minutes chart:

MCX Copper 60 minutes chart:

So, once you have the Elliott wave structure or pattern you now know the address of the market. Using this co-ordinate you can formulate the trading strategy and use appropriate indicators.
So, if we expect a trending move then Moving averages will provide good support to prices, whereas during sideways action Bollinger Bands will do the magic!
Along with charts, it is important to see the support and resistance levels which we give along with the research daily morning.
Get access now to “The Commodity waves short term update” and trade the asset where the opportunity lies. I believe we should be flexible in switching the asset to the ones that are trending. Right now, it seems Commodity is the place to be in – Subscribe Now here

In case you do not have time to analyse and read the charts yourself subscribe to our Intraday / Positional Commodity Tips services where we monitor and shoot the calls based on opportunities. We have been able to capture amazing moves on Gold, Copper and other metal space over past few days. Subscribe for Commodity Tips and get research report free. Get access here

Tuesday, January 2, 2018

Why SBI struggling to give breakout? What is next?

SBI has been a major laggard within the Banking index. This stock has simply failed to participate in the entire rally of December and has been drifting lower.
Interestingly it is one of a very few stocks that is now reaching towards the spike low made on 18th December. So, why this stock has been failing?
Look at the below chart of SBI which was published today morning in our equity research report along with 60 minutes chart – The Financial Waves short term update
SBI weekly Chart:

Elliott Wave analysis:
We are showing weekly chart of SBI to see why there has been such a huge supply near the levels of 340 – 350. If you look at this chart, one can see that the high of 2010 after the financial crises was also at the same level of 340. So for an investor since 2010 this stock has not given any returns for almost 7 years now. Isn’t it interesting to see how a major PSU bank has simply failed when the economic reforms and growth has been the talk of the town.
As shown on hourly chart, (shown in actual research report)………….
Rise in SBI since the lows of 2016 has been in corrective fashion which suggests that the correction which started in 2010 is still not over and we have arrived at very important juncture.
I am sure many would have been bullish on PSU banking space but only to encounter minuscule returns compared to other outperforming stocks. We have refrained from recommending investments in this sector and it has paid out well.
So, how to form trading strategy on SBI? Please refer the morning equity research report – The Financial Waves short term update that covers Nifty, Bank Nifty and stocks research on charts using Technical analysis, Elliott wave, and crucial support &resistance levels. Subscribe annually and get flat 30% off on the product. What more get access to the Monthly research report free for 3 months which will cover indepth analysis on Bitcoin in the upcoming issue. Subscribe by visiting Pricing page and select period as 12 months, we will set you up for your 3 months of free copy of monthly research report along with it!