LT: Giving 66% returns, How to identify Multibagger stocks?

 

We published about LT in August 2022 and predicted possibility of Multibagger returns in coming 2-3 years. Check out the research we had published on 24th August itself – This stock has managed to hold its gain and gave more than 66% returns in one year of span and made a life time high of 3009 levels.

Larsen & Turbo (LT) Weekly Chart as on 24th August 2022:

Larsen & Turbo (LT) Daily Chart 24th August 2022:

Multibagger stock recommendation: Larsen & Turbo

Buy Price – Buy at CMP 1880 and more on dips to 1692

Time Horizon –2 to 3 years

Investment – 5% of capital

Target price – ??

Stop loss- ??

Anticipated as on 24TH August 2022– Elliott Wave Theory:

On the weekly chart of Larsen & Turbo (Figure 1), prices are moving in an impulsive fashion. Prices have broken a channel resistance and continued to move higher. The long consolidation from 2008-2020 was wave 4 unfolding in the form of bow tie Diametric pattern. After completing primary wave 4 near the lows of 660 level, primary wave 5 is moving on the upside. 40 Exponential Moving Average (EMA) is providing good support to the prices at regular intervals. The support as per the average is placed near 1700 levels. Any dips towards the mentioned level can be used as buying opportunity.

Time cycle of 89 days: The 89 days Cycle is working extremely well on the stock and as you can see on the daily chart, many reversals have been formed on this cycle. The next cycle low is likely to due on 19th September 2022.

Happened as on 14^th September 2023

Happened– The stock has been moving in sync with our expectation and currently quoting near 2931 levels. It has touched its 52-week high near 3009 levels in the month of September 2023. The up move has been strong and we expect prices to achieve its target of...levels in coming months. The stock is giving a return in excess of 66% average return in one year of span.

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Elliott wave with Ichimoku Cloud – Best Indicator to Trade!

Elliott wave – Neo wave has helped us to stay on the buy side all the way when prices broke above 19430 levels.

We have been mentioning it in our daily research report – The Financial Waves short term update complete Nifty path using the concept of Elliott wave – Neo wave.

Two indicators along with Elliott wave that works best is Ichimoku Cloud and KST (momentum indicator)

Nifty 15 minutes chart

Elliott wave and Neo wave is GPS of the market that provides forecasting ability and ability to trade with an edge.

As shown in above chart post the rally that started from 19224 prices managed to break back above the Ichimoku cloud to the levels of 19600 where it completed wave (a).

Pos that prices moved lower towards support of the Cloud and completed wave (b). The best trade setup for positional trade was when prices again bounced back from cloud support and broke high of wave (a) thereby confirming start of wave (c) higher in the form of Diametric pattern.

Why Diametric – As per Neo wave logics, when wave (b) takes lesser time as compared to wave (a) we can expect Diametric pattern to form. This is a 7 legged pattern labeled as a-b-c-d-e-f-g. Prices are currently only in wave c and so many more legs are yet to unfold taking prices to new highs.

Wave (c) target on upside if we measure 1.618 times of wave (a) is near 20070 levels. This is on basis of guidelines and not rules. On downside, lower cloud support is near 19700 levels and so dips can be used to buy the index as long as this level is intact.

Gann square of 9 Targets – We have derived Gann levels of 19391 and 19952. Prices moved from 19391 to the next Gann level of 19952 in just 6 days of time.

In a nutshell, we turned bullish near 19430 levels and prices have already rallied by 500 points. This only shows power of Trading using science of Neo wave with Ichimoku cloud and Gann square of 9.

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Trading Using Elliott Wave – Neo wave Diametric Pattern

 Elliott wave and Neo wave is GPS of the market that provides forecasting ability and ability to trade with an edge.

Below charts show Nifty and Bank Nifty Neo wave counts discussed during the live session of Mentorship.

Nifty daily chart: as per Neo wave plot

Nifty Neo wave on hourly chart: Anticipated on 5^th September 2023

Bank Nifty hourly chart: discussed during mentorship session on 5^th September 2023

Nifty Neo wave plot is shown as first chart. There is a unique way to draw charts as per Neo wave method and it gives immense clarity to understand the price movement as each and every wave becomes distinguishable.

As per the counts prices moved up from 17060 levels in Diametric pattern followed by x wave and now a possible triangle pattern is ongoing. The overall view is bullish as prices will rise in form of wave c post completing wave b at the lows of 19224 levels.

Nifty second chart was discussed during the Mentorship session along with possible outcome as per Fibonacci retracement method.

2 stage faster retracement – This is one of the most important concepts of Neo wave. As per this concept we will get strong confirmation that the meaningful low is in place and prices have started the upward journey. This was obtained as soon as the starting point of wave f was taken out.

Bank Nifty Neo wave – Bank Nifty pattern was discussed during live session of Mentorship where we expected a positive breakout as the entire down fall looked completed. Bank Nifty moved from 44408 levels making a high of 44915 on 7^th September itself when majority were expecting a fall.

Both Nifty and Bank Nifty moved precisely as per the studies of Neo wave. Infact, Bank Nifty has just given a breakout from the inverse Head & Shoulder pattern which we call as Extracting Triangle in Neo wave terms.

Target derivation – With understanding of Neo wave patterns one can derive the targets using Fibonacci levels and retracement. 61.8% retracement target was at 19700 levels which got achieved precisely as expected on Nifty and the 80% retracement level gives target of 19840. These targets are derived on basis of post pattern implication of Neo wave Diametric.

In a nutshell, by combining Neo wave, Hurst’s Time cycles and Ichimoku Cloud it is possible to form powerful trade setup of forecasting and trading with higher profits at lower risk. 

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Crude Oil: How to identify precise targets using Wave theory and Time cycles.

It’s possible to forecast almost precise targets months in advance using Neo waves and Time cycles. Check for yourself how we analysed such move in Crude Oil a month ago.

The following research on crude oil was published in “The Financial Waves Monthly Update” on 14^TH August 2023.

MCX Crude Oil Weekly chart (As of 14^TH August 2023)

MCX Crude Oil 115 Days’ Time cycle (As of 14^TH August 2023)

Wave analysis as on 14^TH August 2023.

Crude is trading near the three-month high due to tightening of Global supply and strong demand in countries likes US. So, prices can continue to surge higher in coming months. Since December 2022, MCX Crude Oil was moving in a consolidation. Prices recently gave breakout of the consolidation and till date managed to stay above it. Let us understand view for MCX Crude for coming months.

Crude Oil weekly chart: -We used the bar technique approach on the weekly chart. As we can see, prices have not closed below the preceding week’s low since the beginning of July, which is a positive indication. Crude is currently trading near its swing high which is near of 6805 levels. If the price closes above its swing high, then it will be a good indicator for this asset. Because of this surge, the price was able to break out of its Multi month range of 6200-5550. Also, the prices, which was previously trading in a downward sloping channel, has broken out of it and is now trading above it.

Time Cycle: - 115 period time cycle is working well on the daily chart of this commodity. This Cycle has been working exceptionally well in order to catch lows in every 115 days. The low formed near 5529 levels were wave g was completed was also on our cycle and since then we can see that the commodity has shown a good rise.

In a nutshell, trend for Crude Oil remains positive. One can continue to use buy on dips approach to ride the trend and then we can expect prices to move upward towards 7100. While on the downside, 6500 can act as a near term support. Any breach below 6500 will be a sight of concern. 

MCX Crude Daily chart Happened as on 5^th September 2023

Happened: MCX crude oil was trading near 6868 levels when we published it. Prices took support precisely near 6500 levels and bounced back from it and achieved our target of 7100 and made high of 7121. For now, one can continue to ride the trend buy using buy on dips approach.

In short, the above analysis clearly shows how well the cycle theory works. We have been using these techniques by combining it with Neo wave and simple price action!!!

Master of Wave (MOW) – Elliott wave, Neo wave, Gann sq of 9 and Hurst’s Time cycles are the best advanced concepts of Technical analysis that I have ever used. Ensure to learn this science of trading in online event scheduled on 16^th – 17^th September 2023. Pre session videos, 5 Bonus videos for lifetime, 6 hours of Elliott wave videos for 1 months, Gann special video access will be given in addition to the actual live training. Limited seats only, Bonuses valid only for limited time. Fill below form for more details:

 

Gann Square of 9 – Trade Using Gann Price Action and Elliott Wave!

Gann Square of 9 is simplest way to identify Price action support and resistance area.

Nifty has been following this Gann square of 9 levels prudently. These levels also act as magnet or mean reversion.

Nifty Daily Chart – Gann levels with Neo wave

Gann analysis

Nifty has continued to rise since the low formed near 17060 levels and every rise has paused around Gann square of 9 levels marked as red horizontal lines.

The top formed at lifetime high levels is also 19990 which is near Gann square of 9 levels.

The fall after that halted near the magnet 19391 that we have been talking about since many weeks.

So the low near 19220 is crucial. These Gann levels act as magnet in pausing the up and the down move and prices start oscillating around it. Easiest way to trade this is to sell Options around this levels.

Elliott wave – Neo wave analysis -  The entire rise on upside has been in double corrective pattern and prices formed Diametric – x – Triangle (ongoing). So we completed wave b of a Triangle and prices can be in wave c. We can expect price movement back to 19750 – 19800 levels as long as the low formed below Gann level near 19220 remains intact.

This way by combining simple Gann and Neo wave pattern trading can be extremely interesting as it combines the power of Price action along with Neo wave techniques.

Options trading can take a different league as one can form prudent strategy on basis of above.

Master of Wave (MOW) – Elliott wave, Neo wave, Gann sq of 9 and Hurst’s Time cycles are the best advanced concepts of Technical analysis that I have ever used. Ensure to learn this science of trading in online event scheduled on 16^th – 17^th September 2023. Pre session videos, 5 Bonus videos for lifetime, 6 hours of Elliott wave videos for 1 months, Gann special video access will be given in addition to the actual live training. Limited seats only, Bonuses valid only for limited time. Fill below form for more details: