Monday, April 30, 2018

Yes Bank – Power of Head & Shoulder pattern, text book pattern!

Yes Bank had been a late entrant in the ongoing rally but it came with a bang! The stock rose sharply as soon as our mentioned resistance level was broken.
I do not necessarily look at only Elliott wave pattern but the orthodox technical analysis patterns like Head & Shoulder are equally important for me. Yes bank gave classical breakout above its neckline and achieved the target levels precisely as expected.
Below is the part of research from “The Financial waves short term update”
Yes Bank 60 mins chart:(Anticipated as on 20th April 2018)

Yes Bank 60 mins chart: (Happened as on 27th April 2018)

Wave analysis: Following was anticipated on 20th April 2018 morning research report.
Yes Bank has finally showed a pause in its multi-month down move which is a sign of relief. Also in previous trading session it managed to gain by 2.89%. It is now arriving near important juncture.
As shown in daily chart, (showed in actual research report) prices have completed wave (c) of Flat pattern correction near 286 levels and next leg on upside in form of wave (x) is ongoing which can take the prices towards 360 levels where red channel resistance is placed. Also its 25-periods EMA is moving along with prices which indicate short term positive reversal might be possible.
As shown on hourly chart, prices have completed wave c on downside completing wave v of Terminal pattern (Ending Diagonal). As of now prices have broken the ii-iv trendline but failed to take out the important resistance of 320 levels and is now moving sideways. Currently wave a has completed near 320 levels and next leg in form of wave b is ongoing. Also we can see an inverse Head & Shoulder pattern and break above the neckline placed at 320 levels can take prices towards 360 levels which is the post pattern implication target.
In short, trend for Yes Bank is positive. Close above 320 levels can take the prices towards 340 followed by 360 levels.
Happened: Yes Bank broke above 320 and rushed towards the target level of 360 on upside. This simply shows power of combining Elliott wave with technical analysis Head & Shoulder pattern!
“The Financial Waves short term update” is daily equity research report covering Nifty and 3 stocks providing detailed analysis using Elliott wave and other technical analysis methods. Subscribe here
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Friday, April 20, 2018

Thursday, April 19, 2018

Dabur – How to use Time cycles for capturing a big swing?

Time cycles can be a very powerful method in identifying the major turning juncture. But it should not be applied alone. By combining it with techniques like Elliott wave you can get price projections more accurately.
Now look at the below chart of Dabur on which we have applied Hurst’s Time cycles. So what do you think should be the target?
Dabur Weekly Chart:

Wave analysis:
Dabur India Ltd is into FMCG sector with Market Capitalisation of over Rs 61,900 Crore. The major reason to pick up this stock is that it has been into a long bull trend since 2003. The overall structure of this stock is explained below.
Elliott wave perspective, Channeling technique are explained with targets in the actual research report.
??? weeks cycle: It is now time to look at the bigger cycle in order to understand the probable reversal areas from medium term perspective and we can observe that exactly at the cycle day important bottoms are formed. Following which prices have shown sharp rise and touched all-time high. As per 108 weeks cycle, stock has made a low at 316-levels which also happens to be the support level which was resistance earlier as shown in the figure. This shows that going forward, prices have high probability ………..
Channeling technique: Since 2012, prices are intact in upward moving blue channel and currently prices are taking support at the lower trendline at around ………. levels.
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Wednesday, April 18, 2018

BAJAJ Finserv: How to create wealth using technical analysis?


Bajaj Finserv is one of the outperformer within the finance sector. Many a time’s stock is fundamentally strong but has poor performance so it is important to identify outperforming stocks along with strong fundamentals for long term pick.

For understanding a particular stock performance technical analysis plays an important role, using techniques like Channels, Moving averages, Elliott wave counts etc.

Figure 1: Bajaj Finserv Ltd. weekly chart: (Anticipated on 5th June 2016)


Figure 2: Bajaj Finserv Ltd. weekly chart - Happened


Below is the research published on 5th June 2016:

Anticipated- As shown in the weekly chart, major bottom for this stock was formed in 2008 which was a black year for the Indian Equity markets. After such sharp fall this stock had the potential to fly and it rallied impulsively from there on. As per wave perspective intermediate wave [1] completed its course near the channel resistance and post that wave [2] completed its running complex correction W-X-Y near the channel support in year 2013. Post that prices bounced sharply suggesting that wave [3] is currently ongoing. The internal structure of the same suggests that recently minor wave II of the same has completed near the channel support and now minor wave III is into action. This rally should continue towards the resistance line near 5000. Now the outlook will remain positive for this stock as far as the channel support is intact and any dips towards the crucial support of 1800 - 2000 levels should be utilized as buying opportunity.

For Bajaj Finserv, in update dated 5th June 2016 we mentioned that, “cluster of evidences like Elliott wave counts, moving average, Channeling technique which is working brilliantly we can see much higher levels Bajaj Finserv. This rally should continue towards the resistance line near 5000. Now the outlook will remain positive for this stock as far as the channel support is intact and any dips towards the crucial support of 1800 - 2000 levels should be utilized as buying opportunity.”BANG ON!!

Happened: As mentioned in our previous update on this stock, prices exhibited a sharp move on upside and has moved above our previous mentioned target of 5000 levels. It is interesting to see that Bajaj Finserv has provided more than 150% return.

When we recommended this stock it was in the category of Midcap and now the stock is included in Largecap and also in Nifty 50. This only shows how one can capitalize on the stock that can become Largecap from Smallcap to Midcap.

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Tuesday, April 17, 2018

Nifty: Application of Volume at Price indicator for trade setup!

Volume at Price indicator provides very important support and resistance levels and helps in understanding the reversal areas. We applied this indicator on Nifty and it helped us to capture the recent down move. You can see the bounce back exactly from this indicator support levels.
Below is the research picked up from “The Financial Waves short term update” daily research report.
Nifty daily chart:

Following is a part of research mentioned in the daily report published on 16th April morning before markets opened:
In previous update we mentioned that “Nifty touched our next target of 10470 and it is prudent to book partial profits at current levels for longs initiated near 10250 – 10280 levels. For remaining positions one can continue to follow trailing stop method”
US attack on Syria might result into short term volatility in global markets especially commodity. It is therefore important to see how prices behave after the opening move. In addition to this Infosys results can also lead to pressure on IT stocks. However, we have observed that during such events there is handful of stocks which manages to balance out the index and the sharp decline is averted. In the past as well when IT companies corrected sharply after result announcement there were other stocks that kept index buoyant.
As shown on Nifty daily chart, prices have now touched the upper end of the Bollinger bands and formed a DOJI candle in previous trading session. There can be some consolidation in the zone of 10350 – 10550 levels.
We are also showing Volume at price indicator. This is an excellent indicator that measures how much volume has gone in that specific price range. The peak can be seen near 10300 – 10350 zone. So this level will now act as a very important support. This is also the pivot low seen during the recent up move. Any dips near to this level will result into an upward thrust. So we will stay bullish as long as the zone of 10350 – 10300 remains protected.
In short, expect range bound movement between 10400 – 10550 levels as long as 10350 remains protected on downside.
The above research clearly shows how one can use a simple indicator for deriving the important levels and trade setup can be formed around that. Based on above one can form a strategy of going long near 10400 levels with just 50 points of stop at 10350 and expecting a target near 10550.
Happened: Nifty touched the high of 10557 in today’s session itself!
Get access to “The Financial waves short term update” and see yourself power of various indicators like RSI, Volume at price, Channels, Moving averages applied along with Elliott wave counts. So what is next from here? Subscribe here

Friday, April 13, 2018

How to apply Fibonacci studies with technical indicators?



In this webinar you can see application of different technical indicators, Fibonacci retracement projections, applied on charts. Visit https://www.wavesstrategy.com for detailed Elliott wave, Neo wave analysis on #stocks, #commodity, #forex markets

Thursday, April 12, 2018

Gold – Power of 3rd wave, it cannot be more accurate!

Gold has shown amazing rise in just a day’s time. Was this up move predictable?
Gold had a sharp rise of  2.2% in a single day. This stark move was very much predictable and here is the proof!
Here we have shown short term chart taken from “The Commodity Waves Short Term Update” on MCX Gold which helped us to capture the up move using Elliott wave, Moving Average and Channeling Technique.
MCX Gold April 60 mins chart: Anticipated as on 11th April morning before markets opened

MCX Gold April 60 mins chart: Happened as on 11th April post trading session.

Wave analysis:
The below research is picked up from “The Commodity Waves short term update” published on 11th April morning.
Anticipated: “The shine of the Gold has been coming and going away all these time reacting to global market. Despite of the volatility, the metal has made higher highs and higher lows from last 3 trading sessions which shows that prices are heading northwards. As shown in daily chart, in the previous trading session, prices touched a high of 30779-levels and closed at around 30759-levels. Gold is moving in upward sloping blue channel and has managed to stay above its support of 50-period Exponential Moving Average which is near 30362-levels at present. Gold has completed wave 2 at around 30185–levels on the downside and presently prices are forming wave 3 of (c) on the upside……..Close above 30850 can touch 31500 or even higher levels” BANG ON!
Happened: The metal has acted exactly as we mentioned. It breached 30850-level in the previous trading session and touched a high of 31562-levels. This shows power of wave 3!
To know the in-depth analysis from Elliott wave perspective, get access to the “The Commodity Waves Short Term Update” which covers Gold, Silver, Crude and Copper with important levels. We provide intraday/positional trading advisory based on Elliott wave pattern and favorable risk reward ratio which has accuracy of 75% to 80%. Based on these methods we also gave Intraday call on Silver that achieved even the target 2 levels. It is time for you to start trading systematically using time tested methods… Subscribe here!