Applied Elliott wave, Channels, Patterns on BHEL

By Waves Strategy Advisors, For more information visit www.wavesstrategy.com

BHEL, is one of the shares which broke 2008 lows near 200 in the start of 2013 and moved lower till 100.

In this kind of downtrend it is very challenging for trader or investor to catch a bottom. However, we were very accurate in catching the short term bottom.

Below we have shown extract from the daily research report of BHEL along with 120 mins chart which we had published on 19^th September, 2013:

BHEL 120 mins chart: Showed on 19^th September 2013

Happened so far:

Wave Analysis:

On 19^th September 2013 we mentioned that “For BHEL, prices respected the inverted head and shoulder pattern very well, moved higher and touched 146. Yesterday prices were down by almost 4% but that seems to be completing wave ii on downside.

Above we have shown daily chart (showed in actual report) of BHEL, intermediate wave ……. ended near 100 levels and started moving higher. This can be very deep retracement if indeed wave …… of a very higher degree has ended. From last 3.5 years, prices have tried many times to cross 50 days EMA but it was unable to sustain above same moving average for longer period and  continued the downtrend. This time we have to see if prices can sustain above this Moving average.

Stock completed wave a or i near 145 and has moved down in the form of wave ii. ……… We are closely watching the price action if the characteristics of rally confirm this.

In short, as long as 120 is intact on downside we expect uptrend to resume anytime and move above ………….

Prices sustained above in level mentioned in our “The Financial Waves STU” – report dated 19^thSeptember, 2013 and today trading near 147.

We use simple technical analysis along with Elliott wave counts to catch an upcoming price movement.

To get full research on Nifty and 3 stocks along with charts and detailed explanation subscribe to our daily research report “The Financial Waves Short term update”. We have even shown daily chart of BHEL from 2005 to 2013 with Elliott wave counts to get a long term picture. For subscription please visit the Store page or click here: http://wavesstrategy.com/index.php/store.html