Trading HDFC using Head & Shoulder pattern & Time cycles

The below research is by Waves Strategy Advisors. For more information on Trading using Elliott wave and Advanced technical analysis visit www.wavesstrategy.com. For subscription details visit http://wavesstrategy.com/index.php/store.html

HDFC has formed a very important Head and Shoulder pattern.

Head & Shoulder is a topping pattern and indicates reversal of trend. Break below neckline provides important confirmation on validity of this pattern. Also break of trendline with Time cycle suggests provide high conviction trade setups.

The below chart is published in today’s morning research report “The Financial Waves Short term update” along with short term charts. It is important to see the short term charts as well for getting good risk – rewards and entry levels. In below article we are showing only daily chart and not 60 mins chart.

HDFC Daily chart:

Waves Analysis:

HDFC is one of the stocks from finance sector which is underperforming Nifty since mid April 2013 and currently trading and sustaining below upward moving channel which was intact since 2009.

As shown in daily chart, recently prices made Head and shoulder pattern near upward moving channel and has given breakdown from the neckline and moving lower. Now, …… will act as a strong resistance.

We have been using other technique like time cycle to confirm the same. Time cycle of ….. days is working very well where this stock has made …... Now, prices have approached near the cycle andtrendline breakdown along with H&S Pattern.  As shown in 120 mins chart, it has been moving lower in downward moving channel. As long as this channel is intact trend can continue on ???

To get the indepth view of HDFC and how we are reading Time Cycle with short term charts on Nifty and stocks from other sectors subscribe by visiting http://wavesstrategy.com/index.php/store.html