Hindalco has been in news for over past few
weeks with regards to “Coalgate” SCAM.
Trading based on simply news can be very
challenging. On 21st October following news was announced –
Hindalco Industries Ltd (HALC.NS)
gain as much as 4.3 percent after Prime Minister Manmohan Singh's office says
he is satisfied with the outcome of the process of allocating coal blocks to
certain companies, dealers say.
The stock in today’s trading session is down by
almost 2% and way down from 120 levels when the news was announced. Looking at
the below chart it is difficult to even say that either positive or negative
news has impacted the stock let alone trading based on news.
Hindalco
120 mins chart:
The above
chart and below explanation is picked up from “The Financial Waves” short term
update research report published on daily basis.
Wave Analysis:
Metal Index is one of the indices which
started to outperform the market from the start of August 2013. During August
we have witnessed one of the major downside corrections of 2013 in markets.
However, during that period this index started to move higher. During this run
up, Hindalco went up from 85 to 125 levels. However, from the mid September
2013, prices were consolidating between 125 and 110. Recently, it has breached
important support of 110 and closed below that, which indicates ……
As per wave perspective, from the start of
2013 prices have been trading in flat correction pattern as primary wave B has
retraced more than 61.8% of primary wave A. The break below 110 indicates that
primary wave C has started on downside which can move at least towards ……..
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