By Waves Strategy Advisors, For
more information visit www.wavesstrategy.com. Attend 2 days training seminar on 13th and 14th July 2013 held in Mumbai on Application of Elliott waves. For more details write to helpdesk@wavesstrategy.com
Elliott wave is one of the most interesting concepts in Technical analysis. It is based on direct price action and is not a derivative like other indicators or Moving averages.
If applied correctly there are times when the study is accurate to the point. As per Elliott wave theory market actions are in the form of 5 waves in direction of bigger trend and 3 waves against the direction of main trend. For Equity markets, within these 5 waves there is very high probability of 3rd wave being the most extended. As per Advanced Elliott wave concept – Neo Wave, 3rdwave can be 1.618 to 2.618 times the next biggest wave out of 1,3 and 5. The below chart ofRCom is a classic example that shows minor degree wave iii (blue) is exactly 2.618 * wave i to the point. Currently prices are extending further within wave v and is in wave iii (red) following the concept of wave Extension.
Rcom 120 mins chart:
Anticipated on 2nd July 2013: shown on “The Financial waves” research report
Happened as of today so far:
Waves Analysis:
On 2nd July 2013 we mentioned that, “RCOM breached the multi-year downward sloping (red) channel on upside in April 2013. This was the first positive sign after multiyear of downtrend since 2008. Yesterday, there was strong rally seen across high beta stocks and ADAG pack. RCOMclosed almost 13% positive. This is clearly showing that RCOM strong outperformance as soon as major index Nifty started showing strength. RCom is one stock that has moved sideways when the major market was moving down and it started outperforming on upside as the trend reversed. This indicates inherent strength in this stock.
Elliott wave:As we can see on 120 mins chart, prices formed Expanding Triangle pattern in wave iv and currently is moving on upside in the form of wave v of wave C. This wave v looks to be subdivided and the stock is probably in wave iii of v. Recently prices have breached the important resistance of 115 which is now acting as crucial support. The momentum looks very strong in this stock and any dips can be used as buying opportunity as long as 120 levels remain intact on downside. In short, our bias for RCOM is positive as long as 120 level is protected on downside and prices can move towards 145 – 150 levels. BANG ON!!!”
Happened: RCom has just now touched a high of 148.40, near the levels we have been talking about few days back. This simply shows the power of 3rd waves and the wonders they behold!
We are having 2 days training sessions on Elliott waves on 13th and 14th July 2013 where we will be focusing on practical application of not only Elliott waves but also the supporting indicators - RSI, Channels, Trading psychology which is all necessary to get high probable trade setups and important target zone. For more details on training seminar or daily research report write to us at helpdesk@wavesstrategy.com or call us on +91 22 28831358 / +91 9920422202
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