Friday, March 1, 2024

DATAPATTNS Bang On- 2 Best Indicators You Cannot Miss!

Simple price pattern breakout along with price indicators creates wonder if one combines it together! See yourself how we identified such massive move in DATAPATTNS Check out how we selected this momentum stock named as DATAPATTNS which has rallied more than 19%

We published DATAPATTNS analysis in "The Financial Waves Short Term Update" on 23rd February 2024 which our subscribers receive pre-market every day. Check out below the detailed research report that we published.

DATAPATTNS Daily chart Anticipated as on 23rd February 2024

DATAPATTNS Hourly chart Anticipated as on 23rd February 2024


Wave analysis as on 23rd February 2024:

DATAPATTNS has been moving higher recently and intact in strong uptrend. In the previous session it closed with a massive gain of 8.67%.

On the daily chart, in the previous session prices formed a bullish candle. The stock is moving in a rectangular range over the last few days indicating accumulation in the stock. Price has closed above this trading range will result into a bullish breakout of the rectangular pattern. Price is trading above the ichimoku cloud which indicate that the short-term bias is bullish.

As shown on the hourly chart, we have applied parabolic SAR which used to determine the price direction as well as draw attention to when the price direction is changing. A series of dots placed below the price which is deemed to be a bullish signal. Closest support is placed at 2110.

In short, trend for this stock is positive. Use dips towards 2200-2220 as a buying opportunity for a move towards 2440-2460 levels as long as 2110 holds on the downside


DATAPATTNS Daily chart Happened as on 1st March 2024

Happened: After we published the report, the stock made a dip exactly towards 2220 levels which we mentioned earlier. Within the short span of time, the stock has given more than 19% return in such volatile market and moved way beyond our target which was of 2460 levels. Stock made high of 2679.95. Price action supported the trend and as a result we saw a sharp rally in DATAPATTNS


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Thursday, February 29, 2024

Multibagger Stock: Zydus Lifesciences up by 68% in just 6 months!!

We published about Zydus Lifesciences in August 2023 and predicted possibility of Multibagger returns in coming 2-3 years. Check out the research we had published on 23rd August 2023 itself – This stock has managed to hold its gain and gave more than 68% returns in 6 months of span and made a life time high of 923.65 levels.

Zydus Life Weekly chart Anticipated as on 23rd August 2023

Multi bagger stock recommendation: Zydus Lifesciences

Buy Price – Buy at CMP 650 more on dips towards 560 level.

Time Horizon –2 to 3 years

Investment – 5% of capital

Target price –??

Stop loss - ??

Anticipated as on 23rd August 2023– Elliott Wave Theory:

Zydus Lifesciences Limited, formerly known as Cadila Healthcare Limited, is an Indian multinational pharmaceutical company which is primarily engaged in the manufacture of generic drugs.

In the Weekly chart of Zydus Life, we can see that, stock is moving well within a multiyear channel. Stock has also formed a Rounding Bottom pattern and currently on the edge to give breakout. Usually this pattern occurs at the end of the downtrend. This time it is making an exception by forming on the top. However, breakout is still pending. For short term we expect some consolidation before breakout as it will give time for RSI to cool off. After which, fresh breakout is expected.

As per wave perspective, currently primary wave 5 is ongoing on the upside which is subdividing in nature. The stock is following 89 Period cycle really well. As it has managed to capture almost all the important lows. The recent low formed near 320 levels was near our cycle and since then we witnessed a good rise which is in form of intermediate wave iii.

Zydus Life Daily chart Happened as on 29h February 2024

Happened– The stock has been moving in sync with our expectation. Stock made a dip exactly near our mentioned levels and from thereon we saw a sharp bounce on the upside. Stock has shown a really good rise of overall 68% from the lows in just 6 months of span!!! It has touched its fresh record high near 953.65 levels recently and currently it is quoting near 935 levels. The overall up move has been strong and we expect prices to achieve its target of...levels in coming months.

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Wednesday, February 28, 2024

Nifty Sharp Selloff Below 22k? Time to be Cautious?

Nifty had a sharp fall and prices broke below 22000 levels as well. This comes along with strong negative divergence on momentum.

Is it time to sell?

Let us look from Advanced Elliott wave – Neo wave perspective!

Nifty hourly chart: 

As shown on above hourly chart, prices started to move higher from the lows of 18838 and showed strong trend in December and early January 2024.

Post that the volatility has increased and we are seeing rise in the size of Candles as well in either direction. Such sharp volatility is not good for uptrend and indicates anxiety among participants.

From Neo wave perspective – the recent rise looks to be slower and corrective that is trapping both bulls and bears on either direction. This type of trap is usually a result of Triangle pattern.

We are revising our wave counts to accommodate for the recent price action and it suggests that post completion of wave x near the lows of 21137 the rise is in triangle pattern. Within this wave c is probably complete and we are not falling in form of wave d. Prices are exactly at the trendline support and breach below it will open the downside targets for 21520 or lower.

On upside 22060 followed by 22200 is immediate hurdle.

The ongoing pattern is most probably triangle and further price action will confirm the above scenario.

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Monday, February 26, 2024

Trading KST momentum indicator with Keltner Breakout on Nifty

Nifty touched lifetime high levels and showing some loss of momentum from there.

Using momentum indicators along with breakout techniques that can help in capturing the entire up move is important.

Nifty 15 minutes chart: 

In above chart of Nifty we can see two important indicators that are focused on prices and momentum.

Keltner channel – This indicator is different than that of Bollinger Bands®. Bollinger Bands uses standard deviation to the mean whereas Keltner channel is derived using Average True Range (ATR). Both of the indicators have different way of application.

In Keltner channel we can see that break above upper channel on 22nd February which was the 1st break above the upper band of Keltner. Post that prices are moving within the bands indicating it is only a retracement of the up move unless we see breakout below the lower end of the Keltner channel.

KST momentum – Breakout on Keltner channel was also accompanied by KST momentum indicator. KST momentum indicator broke above 0 line and also the signal line thereby giving strong confirmation that momentum was picking on upside.

In entire up move prices have not moved below the lower Keltner channel and KST if now again moves back above the 0 line it will indicate a positive reversal. This can be a pause before the resumption of trend but a classic signal can be expected when both these techniques again get synchronized.

In a nutshell, Keltner channel helps to understand if the size of candle is increasing which is suggesting a significant move and KST further provides confirmation of momentum. Price action above 22150 which is mid of the channel will result into another synchronous signal from these indicators.

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Wednesday, February 21, 2024

Hurst’s Time Cycles working across all Time frames, which one to select?

For a cycle practitioner the most important aspect is to understand that there are multiple cycles nested together. Prices behave in a cyclical fashion and cannot be independent to it. Everything in nature and financial markets is governed by cycles right from the Solar Cycle which is 11 years, Lunar cycle of 28 days, Seasonal cycle, Economic Kondratieff cycle of 54 years, Decennial cycle 10 years, Presidential cycle of 4 years and many more.

It is our effort to understand the various cycle currently being active on the given asset class and see where we stand with respect to them.

The simplest way of cycle identification is to see if there are low being formed in systematic fashion. There are various tools available to Detrend the prices and understand the underlying cyclicality. J. M. Hurst’s has brought forward Hurst’s Cycle analysis which has opened up another realm of looking at markets and timing it right from the smallest time frame to the biggest degree.

We are not getting into the science of cyclicality but will show the application of these cycles after careful evaluation and synchronization. Let us begin by looking at the bigger degree cycles first and scale down the hourly charts.

Below is the chart of Nifty picked up from the Monthly research report 

Nifty has been forming lows every 85 weeks. We can see that the crash seen in 2008 also formed a low on this time cycle. This later followed by multiple major lows forming precisely after every 85 weeks.

This shows that prices are following the rhythm of 85 weeks. On two occasions – one in 205 and another in late 2021 prices formed a top instead of a low. This we call as Inversions where tops are formed and not lows. This happens rarely and indicates bigger cycles are topping out.

Covid 2020 – Nifty showed one of the best rallied from last week of March 2020 till 2021. This rise happened despite of Covid wave 2 hitting everywhere which was much more intense and strong. However, prices continued to rise as the time was right and this is the proof that shows when time is in favour events does not matter.

June 2023 – We have talked about this cycle more than a year prior to Jun 2023 and mentioned how we can start the mother of all bull markets in the year 2023. We can already see a rise 16900 levels to beyond 22k which is more than 5000 points on Nifty and whopping 31%.

The above clearly shows the edge that one can get by seeing the Time cycle and the rhythm of market as it moves. The next cycle is going to be due in February 2025 which will be another opportunity for long term bet on “Bharat” to ride the ongoing “Mother of all Bull Markets” – Are you ready!

Kaal Chakra – For the first time ever see how the time indicators like KST can be clubbed along with Pring Special K and Hurst’s Time cycles with confluence of Gann square of 9, Valid Trendline concept and much more, online event on 24th – 25th February, Limited seats almost sold out, Know More