Below article shows GAIL moving in a downtrend channel and is now lying near the upper end of the channel. Chances are high it will continue the downtrend and will take resistance at current levels.
However almost 70 to 80% of the stocks move along with major index Nifty and from trading perspective it is extremely important to know the direction of major index. This is just 1 stock picked up from the "The Financial Waves Short term update" report. The report shows direction of Nifty and total of 3 stocks based on opportunities and charts. Learn and Trade is the best investment you can make. Write to us on helpdesk@wavesstrategy.com to subscribe to this report and learn the practical application of Elliott wave in confluence with other basic technical tools.
GAIL Daily chart:
GAIL 120 mins chart:
Waves Analysis:
As shown above in daily chart of GAIL, since December 2010 prices continuously moved lower by forming lower tops and lower bottoms in the red channel and made a low of 300 in the month of May 2012.
As shown above in 120 mins chart, recently prices took resistance near upper end of the blue channel and drifted lower. Also momentum indicator MACD exhibits the negative divergence accompanied by low volume (shown above in daily chart).
In short, as long as ............ is intact on the upside and prices move within the red channel bias is negative over short term and prices could drift lower towards 350 levels. Further move below this ..........can then move to .......
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