Friday, January 31, 2014

Indian market selloff: FED or RBI is to be blamed?

The below research is picked up from "The Financial Waves short term update" daily research report by Waves Strategy Advisors. For more details visit
Many traders or analysts are blaming either FED tapering responsible for selloff in Emerging markets or RBI responsible as it raised key policy rates
This might sound logical but not necessarily the reason for selloff. Last time when FED reduced bond buying program US markets rallied on the same day and after RBI raised interest rates on28th February 2014 Nifty momentarily entered into positive territory. So if news or events are responsible for market trends than why the contrary movement to the news?
Now read below the analysis by using Advanced technical analysis like Elliott wave, Channels,RSI, Time Cycles etc that is shown in “The Financial Waves short term update” research report published daily.
On 24th January 2014 we mentioned that “Nifty continued to struggle within the zone of 6320 – 6380. The up move is with less power so far. Trade cautiously! In short, we continue to look at the overall structure as topping with resistance level at 6380. Move below 6280 will indicate minor negativity and if prices fall below 6240 impulsively we will get further negative confirmation.”     
On 25th January 2014we mentioned that “It is time to get ready for dynamic and volatile environment again. The narrow range bound movement affects our psychology and conditions us to think of 50 to 60 points move on Nifty as big enough. During August – September 2013 we have witnessed moves of more than 150 points. So get ready if that is about to happen again.
Nifty finally broke below the level of 6280 and that too impulsively indicating a possible top near 6355 levels. The fall on Friday was across the sectors and all the major sub-indices includingPharma and IT closed negative. If Nifty has a Gap down opening it will be important to see if the Gap can remain unfilled today. Giving little leeway existing short position should now trail stoptowards6320 levels.”
On 29th January 2014 we mentioned that“Nifty short term outlook: The severe selloffseen over past 2 days spread across the broader markets as well clearly indicates that an important top is in place. Looking at the time perspective the complete up move from the low of 6139 to 6355 in 9 days is retraced in mere 2 day’s time. In short, the near term trend remains firmly negative …..”
Nifty 60 mins chart: (showed on 24th January 2014 morning)

Nifty 60 mins chart: (Happened as of today expiry)
Happened: We have been constantly cautioning our subscriber since Nifty had been trading in the zone of6320 – 6380 levels. Prices reversed exactly in between of these levels from 6355 and broke the important level of 6280 followed by 6240 which confirmed our bearish outlook. We constantly advised to use trailing stop method in order to ride the trend on downside as Indian markets have a habit of moving either with Gaps or very steeply giving little reaction time. 
Nifty has moved from 6355 levels and made a low of 6027 today. This move has happened in less than 5 days. Such strong trending moves simply reflects why one should be always alert when trading even when markets are moving in narrow range as the volatility is cyclical which increases and decreases in timely fashion. We have accurately captured this move and there is more to it!
If markets would have moved logically based on news outcome then making money by trading would have been a cake walk for everyone. But there is something else that moves the market and we are closely tracking those patterns! Subscribe today “The Financial Waves short term update” and see yourself the answers to why, when, where Indian markets are headed from here. Visit the Pricing Page for subscription options.

Tuesday, January 28, 2014

USDINR: Start of next trend on upside?

Rupee depreciated against US Dollar by more than 2% in just 3 trading sessions. This meansUSDINR moved higher from 61.80 to 62.50.  This up move was not surprise to our subscribers and we were able to capture the whole up move.
In the mid of January 2013 USDINR was at the crucial level where it was at make or break situation. In this kind of scenario objective and systematic way i.e. Technical analysis is very effective which shows the true picture of the asset and help us to take decision in proper way.
On 22nd January we published a free article on website Rupee near two week low. What’s next? Below is the write up picked up from the same article:
In today’s morning trading session prices made a high of 62.09 and almost achieved our first target. Now, question is that, will prices start a down move as prices are trading at resistance or continue the up move.
USDINR continued the up move and achieved the target mentioned in the currency report –TheForex Waves STU published on alternate basis.
Below is the chart picked up from the previous currency report
USDINR Daily chart spot:
Wave Analysis:
On 27th January 2014 morning we mentioned the following:
For USDINR in last update we mentioned that, “Any break above 62.15 will take prices towards 62.80/62.90 where resistance is placed.” BANG ON!!
As shown in daily chart, as mentioned in the last update, there is very high probability that since September 2013, prices have been moving in big triangle pattern in intermediate wave iv. On the other side, in Fridays trading session, Indian market showed weakness and closed on negative note by more than 1%. This is in sync with Indian currency which is increasing the odd that prices may have started intermediate wave v on upside. However, more confirmation we will get above ……. levels only.
As per time perspective, prices moved lower from the level of 62.60 to 61.50 in form of last leg of triangle pattern in minor wave e. This correction took almost 11 trading sessions and the current bounce back has took only 5 trading sessions and it has moved above the high from where wave (e) started and closed on the positive note. As per advanced Elliott wave perspective, the first confirmation of the triangle pattern completed we can get when prices retraces wave (e) leg in faster time. Here we can clearly see that, prices acted accordingly and increasing the odds that triangle pattern may have completed. Further confirmation we will get above ….
We have also shown 120 mins chart along with internal wave counts which is showing next wave counts after the break from triangle pattern. To capture the next wave in USDINR, subscribe to the currency report- The Forex Waves STU which also consist comprehensive research onEURINRGBPINR and JPYINR. For more information visit to us at

Monday, January 27, 2014

Nifty is off the cliff and January effect on world markets!

Nifty is currently down (3 pm) by more than 125 points (2%). This move has broken below the up leg in faster time. This is a very important price and time confirmation for trend reversal.
Today’s fall is no surprise to our subscribers of “The Financial Waves short term update”. In entire last week we have been cautioning our readers that the downtrend is due and the poor up move was accompanied with absolute no momentum and Advance decline line broke the previous pivot lows when Nifty moved higher thereby providing leading indication.
There are times when predictability increases and all indicators point at same direction. This is one such period and trust me it is not very frequent when most of the techniques are pointing at a single direction. This research will provide you necessary tools to convert this opportunity. Simply visit Pricing Page and subscribe to see where Indian markets are headed from here with charts, levels, indicators, strategy!
On 22nd January we published a free article on website Nifty at crucial juncture! Is the move up from 5118 nearing an end?
The below article is picked up from today’s morning report and shows a simple way to measure momentum and in previous updates we have mentioned that “Markets are known to be forming tops in January since 2008 except in 2011.” This is January effect on Indian equity markets.
It seems the world markets are finally trending together. DJIA could have also formed an important top but it is too soon to conclude!
Nifty 60 mins chart: (as of 27th January 3:00 pm)
Following is mentioned in today’s morning report before equity markets opened -
In previous update we mentioned that, “In short, we continue to look at the overall structure as topping with resistance level at 6380. Move below 6280 will indicate minor negativity and if prices fall below 6240 impulsively we will get further negative confirmation.”
Nifty finally broke below the level of 6280 and that too impulsively indicating a possible top near 6355 levels. The fall on Friday was across the sectors and all the major sub-indices includingPharma and IT closed negative.… Banking sector as a whole and especially PSU banks which seems to have started the 3rd leg down.
The sharp selloff seen across the board finally vindicates and justifies our cautious stand and the up move to top out soon which happened between 6330 – 6380 zone. Today can be a plausible Gap down opening below the next crucial level of 6240 given the strong selling pressure globally.
Indian equity and currency markets were not alone in the fall. Most of the emerging markets closed down by more than a percent with currency deteriorating. Our currency report highlights the probable start of primary wave v on upside in USDINR. ….. The correlation between developed and emerging markets is cyclical and we have observed very low correlation for around 2 years now. The same is due for reversal which means the correlation between world markets should again increase.
On Nifty, the lower …… support is near …… level which is also the level from where current wave c started. So it will be crucial to observe if lower end of the band can turn along with prices on downside to further confirm that a very important top is in place!
Trade Cautiously: This week has important events. RBI monetary policy is due tomorrow. 12 month Bond yields are easing out around 8.67% from 8.84% seen during previous policy meet. Our expectation for the policy ….So Trade cautiously and the bias will remain negative as long as 6320 is intact on upside. On downside …….. is now very important level to be watched.
It is time to get ready for dynamic and volatile environment again.The narrow range bound movement affects our psychology and conditions us to think of 50 to 60 points move on Nifty as big enough. During August – September 2013 we have witnessed moves of more than 150 points. So get ready if that is about to happen again. It is imperative to have the important trading strategies ready before market hours as wide fluctuation can paralyze the objective thought process!
Subscribe “The Financial Waves Short term update” our flagship product that give views on Nifty along with 3 stocks providing good opportunity. There are times when predictability increases and all indicators point at same direction. This is one such period and trust me it is not very frequent when most of the techniques are pointing at a single direction. This research will provide you necessary tools to convert this opportunity. Simply visit Pricing Page and subscribe to see where Indian markets are headed from here with charts, levels, indicators, strategy

Friday, January 24, 2014

RANBAXY tumbled by 20%: USFDA concerns but we were expecting the fall!

The below research article is from the daily report "The Financial Waves short term update" by Waves Strategy Advisors. To subscribe to this report that has Nifty and 3 different stocks on daily basis click here Pricing Page
Ranbaxy is the one of the stocks from Pharma sector which often comes in the news media due to its USFDA worries.
Every time whenever prices fell, the justification of the fall was associated with its USFDA issues. 
In the today’s morning session stock was down by 20% and now you may have heard the following news: The US Food and Drug Administration (USFDA) has banned Ranbaxy’s Punjab-basedToansa Active Pharmaceutical Ingredients (API) plant. (stock plunges 20%)– From Money control
The important observation is that this kind of news comes in the media only after the move has completed. Is this down move predictable? The answer is yes and this is possible when one applies advanced Elliott wave theory with basic technical analysis in trading system.
Below is the part of Research report published in the morning of 15th January, 2014,taken from“The Financial Waves STU” suggesting our bearish stand on Ranbaxy from short to medium term perspective.
Ranbaxy Daily chart: (Anticipated on 15th January, 2014)
Ranbaxy Daily chart: (Happened)
Waves Analysis:
Anticipated on 15th January 2014: As shown in weekly chart, from the start of 2011, prices have been moving in complex correction pattern (W-X-Y-X-Z). From August 2013, it moved higher in intermediate wave X and recent break below the channel suggest that it has started last leg on downside in form of wave Z. Currently we can expect, prices to move towards support of the downward moving channel, over medium term.
As shown in daily chart, momentum indicator RSI was unable to move above the strong resistance of 70 during the upside rally of August to mid January 2013, which suggest prices moved higher with lesser momentum and recent break of channel suggest downside correction has started. Now, on upside 450 will act as a strong resistance and can move towards 400/390 where support is placed.
Happened: Ranbaxy moved in lines with our expectations. Prices sustained below the crucial level of 450 and below the upward sloping channel and today we are witnessing fall of 20%. This is the power of technical analysis which provided us the bearish signal before the news arrived and help our client to capture the whole fall.
Do not wait for outcome or news and trade objectively. To know the next move in Ranbaxy subscribe to our Equity report –The Financial Waves Short term update which also cover comprehensive research on Nifty and 3 stocks. For subscription option visit to us at

Tuesday, January 21, 2014

Nifty forming topping pattern! Fibonacci levels!

The below research is published by Waves Strategy Advisors on 20th January 2014 morning. For daily research report "The Financial Waves short term update" on Nifty and Equity stocks visit

Bottom Line: Nifty looks vulnerable. Close below 6230 followed by 6190 will indicate the uptrend from 5118 is probably complete!

Nifty daily chart:

            Nifty 60 mins chart:

data as on 20th January 2014 morning

Wave Analysis:

In previous update we mentioned that, So far prices are still where it opened the month and there is no net progress. Unless and until we see a strong breakout above 6450 with momentum across the sectors our view will be of topping process as ongoing. In short, move above yesterday’s high of 6345 will continue the uptrend as long as 6260 followed by 6230 is intact on downside but the medium term outlook remains as topping for now.”

Nifty had a weak opening on Friday and prices traded in red zone throughout the day. The selling pressure intensified in 2nd half and Nifty momentarily broke below the immediate support of 6260 but managed to close above it. The low made by index was at 6245 which is above an important support of 6230 levels. Close below 6230 will be first sign of negative confirmation that the short term uptrend is in danger.

Move up from 6140 to recent high of 6345 took 4 days exactly like x wave (shown on daily chart) anticipated earlier. Friday was 1st day of down move and a complete retracement below 6140 over next 3 days will be a strong negative confirmation that an important top is in place. We will get the downside forecast for the next intermediate trend once a confirmation for top is in. Move below 6140 will strongly indicate that move from 5118 to 6345 has ended and the trend will remain negative atleast for few weeks if not months. However, as of now looking at the shorter degree chart there seems to be a possibility of one minor push back towards 6320 levels and prices can fail near that. If it however manages to break above it then 6380 can be the strong hurdle zone.

Over short term, as shown on 60 mins chart, the time cycles have been working very precisely. This time as well the top is made a day later similar to previous top which was made a day later shown by this cycle. The idle path is as shown on the chart but the uptrend can be in danger if 6230 is broken sharply in impulsive fashion. As long as that is intact one attempt towards 6320 or 6380 cannot be ruled out.

In short, as prices have so far managed to protect the important pivot support of 6230 we continue to look at the scenario as topping and one minor attempt on upside is plausible. Close below 6230 followed by 6140 will confirm start of a bigger degree downtrend.

For subscription to daily research report "The Financial Waves short term update" on Nifty and Equity stocks visit

Monday, January 20, 2014

Sensex topping pattern by Ashish Kyal in Economic Times Section of Navbharat Times

Sensex looks to be forming a topping pattern!
Trading the results can be challenging: It can be challenging to trade only based on news or results. TCS results that were announced last week beats expectations with 50.3% jump in third quarter profit. However the very next day the stock was down by more than 4.5% even after results were above expectations. The possible reason analysts believe is the higher valuations. But one always has to understand the results that are announced are for the past performance whereas stock market is constantly discounting the future. So as soon as the IT numbers were out the market has started what the expectations are is coming quarters. Trading should also be done with risk and money management strategies. It is therefore necessary to use objective technical tools along with fundamentals to understand where stoploss can be placed along with upside targets to be expected.
Banking sector continues to be under pressure:
Since the start of 2014 itself Banking index has continued to remain under pressure. Even if major index Sensex and Nifty has been consolidating sideways Banking sector continued to move lower. It has been forming lower highs and lower lows. This is one of the simplest and easiest technical way to know the trend of any sector. As long as 11500 resistance is intact on upside Banking index can continue to remain under pressure.
RBI governor is having a challenging task at hand in deciding the monetary policy this time as the economy looks to be really suffering by RBI maintaining its anti-inflation stand. The focus should now slowly shift to getting economic growth back on trackbefore it gets too late.
Sensex long term correction since 2008:
After the high at 21200 made by Sensex in January 2008, the same level was taken out in November 2013. But even after the life time high was made after more than 5 years prices have constantly failed to sustain there and interest sensitive sectors which are back bone of any economy has remained under pressure.
January cycle: January has been weak month since 2008 onwards except 2011 where there was a reversal and trend was on upside. So far prices are still where it opened the month and there is no net progress. Unless and until we see a strong breakout above 21500 with momentum across the sectors our view will be of topping process as ongoing.Sideways action is also a type of correction which is no net progress during inflationary times.
Week Ahead: After the low at 17450 made in August 2013 Sensex trend has been getting smaller. This is a weak structure and so we think Indian markets are forming a topping pattern. In this week we can expect range bound movement between 21400 and 20650 and breakout from either of these levels will give clear trend ahead. Till then trade cautiously during the result season!
For daily research reports and intraday / positional advisory please visit and register to receive daily free newsletter.

Stocks for the day by Ashish Kyal on Zee Business!

Today, we'll take a technical look at five stocks from trading perspective.
Below are the five stocks recommended by Ashish Kyal, CMT on Zee Business before the markets opened.
Aditya Birla Nuvo hourly chart:
This stock is strongly underperforming. One can sell it at CMP with stoploss of 1120 and target of 1045
CIPLA hourly chart:
In the mid December stock completed downside correction .Currently moving higher and made higher highs - higher lows pattern. It is outperforming the Pharma index, which adds to the strength. One can buy CIPLA near 417 with the stop of 410 for the target of 428.
APOLLO HOSPITAL daily chart:
This is one of the outperforming stocks from market. After the completion of downside correction, stock bounced back from the support level and moving higher. One can buy at cmp 927 with the stop loss of 910 for the target of 952.
Banking is the other sector which is underperforming the current market. OBC has broken its important support and moving lower sharply. One can sell at cmp 197 with the stop of 204 for the target of 184.
PNB hourly chart:
PSU Banks are underperforming at current level. PNB is the one which is showing weakness as it has broken important support and moving lower. One can sell PNB at cmp 597 with the stop of 610 for the target of 579.
We provide daily equity intraday and positional advisory. The above stocks were mentioned in morning on Zee Business and our views might have changed based on market movement. We also publish daily Equity Research Report which covers Nifty plus 3 stocks along with detailed chart and explanation. By subscribing to intraday advisory you can get this research absolutely FREE. To get a copy of the same write to us at or call us on +91 9920422202 /+91 22 8831358 or visit

Friday, January 17, 2014

Training on Neo Wave- Advanced Elliott Wave

Neo wave by Glen Neely is an advanced part of Elliott wave. In simple Elliott wave there are only 3 basic rules. However by using only 3 rules for impulsive structure there are couple of probable scenarios always running.
Neo wave has many rules to define a simple impulse pattern which are very rare. This tends to reduce the subjectivity and provide objectively the most probable scenario that can occur.

Does any one of the following happen to you?
  • You buy stock on the basis of good news or better than expected result and price of the stock still keeps falling after you take the long position?
  • Why does market moves in your favor but only after hitting your stoploss?
  • You are always out of the market during best of the trends!
If your answer to any one of the above question is YES, then you belong among 80% of crowd that faces similar situations every day. One of the most common requests we get from subscribers is that can you teach me how to look at a chart and find opportunities for myself? Our Trading course on Neo Wave - Advanced Elliott wave will teach you how to identify and trade those opportunities.

Whether you are an Intraday or Positional trader or want to invest in stocks, commodities or forex, futures or options – you get a practical trading education that you can apply immediately. It is plausible to forecast freely traded markets with high accuracy but provided you have the understanding of necessary technical tools.

About Speaker:
Course conducted by Ashish Kyal - Ashish Kyal is a Chartered Market Technician (CMT)– Degree provided by Market Technicians Association (MTA – USA). He writes for MTA newsletters and is a frequent speaker on business channels like Zee Business, CNBC TV18. He is a regular columnist for Economic Times section of Navbharat Times, a leading newspaper in India. He has been interviewed by Swiss Business Channel on Indian Economy. Ashish carries vast experience of analyzing World Equity and Commodity markets using techniques like Elliott Waves, Time Cycles, and momentum tools. He frequently speaks at financial seminars like Financial Technology, Market Technicians Association (MTA - USA) Association of Technical Market Analysts (ATMA)

Where and when is the course?
The training is at Hotel Grand Sarovar Premiere, Goregoan, Mumbai on 01st-02nd March 2014. This belongs to 5 star category having chain of international hotels and the fees is including Tea / Coffee and Lunch.

Registration Fee: 
The charges for the Training is Rs. 10000 + 12.36% Service tax =Rs.11240/- (Till 31st January 2014). 

If enrolled after 31st January 2014 the charges will be Rs.13490/-

Existing subscribers to any of our research products can avail a discount of 10%

Registration is on first come first basis as there are limited seats.

How to Enroll?
To register for the training using either Credit Card or Net bankingvisit and mention Product as “Neo Wave Training” and period as “1”.
Fill in details at we will get in touch with you.
Write to us at /call us at +91 9920422202 /+91 22 28831358

Wednesday, January 15, 2014

Nifty: The Magic of 76.4% Fibonacci ratio!

Bottom Line: Nifty is following the magic of 76.4% with every alternate waves relating to prior by 76.4%.
Each of the markets has their own individual identity and characteristics.We have to understand the patterns, Fibonacci ratios, price structure that is inherent to that specific market. A specific indictor or Time cycle might work very well for one market but might not work at all for another. It is therefore necessary to see the price movements and feel the charts rather than simply applying a generic technique.
The below article shows the power of 76.4% Fibonacci ratio that Nifty follows very closely and since very long time!
Nifty daily chart:
Wave Analysis:
Magic of 76.4%: Nifty after the strong downtrend from 6340 to 6210 on 2nd January has been constantly moving in a narrow range. It made a low near 6140 and has been managing to protect the zone of 6130 – 6140. The low made by wave (a) was also near 6130 level. Apparently there was no other evidence for such important support at this level which forced us to measure the relationship between alternate waves. Nifty has for many years respected the levels of 76.4% and 23.6%.
A close observation reveals that each of the up move is 76.4% of previous up leg and each of the down move is 76.4% of previous down leg. The daily chart is clearly showing this measurement. The level of 6130 is exact 76.4% of prior down wave x. From the lows of 5118 each of the waves has followed this Fibonacci relationship. So for downtrend to continue Nifty has to break this phenomenon and move below 6130. Failure to do that will indicate an up move towards ………. (76.4% of prior up wave a is possible).
Short term possibilities: Nifty formed a Doji bar on Friday. The follow-up action today will provide clues on short term direction. Break below the Doji low and 6130 will be sign of weakness and indicate wave c of the Flat correction is ongoing and wave iii of c has started. However, wave ii has consumed lot of time, also Time cycle is due tomorrow or Wednesday and so we are now having little apprehension for validity of this scenario.
If Nifty manages to protect 6130 and closes above 6230 then the other possibility is that a triangle pattern is currently ongoing within the blue trendline shown on 60 mins chart or the upside trend towards ……….. (channel resistance) / ………. (76.4% level) has started.
The above research report was published on January 13, 2014 before equity markets opened. This research report clearly mentioned the crucial level any trader should watch and accordingly formalize the trading strategy for the day. To know what more things are working on Indian markets and where it is headed from here subscribe to “The Financial Waves short term update” our flagship product and get daily research emails in morning. For subscription simply visit the Pricing Page and we will set you up for your daily research reports.

Waves Strategy Advisors Contact us for Investing and Trading in Equity, Commodity and Currency markets

If you invest in the market on a regular basis and don’t earn as much profit as you expect then, you can consult the experts of Waves Strategy Advisors. Based in India, this independent research house offers an extensive range of services in Equity / Commodity, Currency and Global markets. Research Reports on Equity and Commodity are published on daily basis before the markets open. Currency and Global Research reports published on alternate days covers short to medium term analysis with charts and explanation below it. Intraday/Positional trading advisory on Equity, Commodity and Currency markets. Monthly Research Report with long term analysis and more. You can benefit greatly on your investments or trading with this. For a free 3 day trial, log on to

Monday, January 13, 2014

Nifty Fractal Nature: Why similar patterns are seen across different time frames?

The below research is by Waves Strategy Advisors. For daily free update register on
What is Fractal Nature? We are re-visiting that concept to explain the latest Fractal nature seen on Nifty.
In previous articles as well we have mentioned - Humans behave in a manner, when given a stimulus, in similar and probabilistically predictable fashion. This behavior of acting in similar ways makes us no different than the other creations of nature. Freely traded markets are the only sources that reflect the collective behavior of humans and the current social mood. Highly liquid markets cancel out the random events and what is left is the social mood of the mass and that indicates what we can expect in the future.
Indian markets have been exhibiting a similar structure on different time scales very often. The importance of Fractal nature confirms the existence of repeatable patterns on different degrees that makes the market movements predictable.
Nifty 60 mins chart (left) / Nifty weekly chart (right)
Fractal Nature example:
Nifty exhibits a classical fractal nature with prices showing similar pattern on 60 mins chart shown on the left side and weekly chart on the right. The fall in August 2013 can be compared to that seen in 2008, post that the rally September 2013 is similar to rally of 2009 – 2010. Post that Nifty is moving in sideways action and managing to protect the high made at 6415.
Such developments are indeed a thrilling experience and are exactly the reason why patterns like triangle, wedge or Head & Shoulder keeps occurring on different time scales.
Isn’t it astonishing to see such similarities across time frames. Fractal nature is one of the foundation on which Elliott wave patterns are based.
Everything in this world is systematic & patterned and there is no place for randomness to exist for extended period of time. We are against the theory of Efficient Market Hypothesis that claims humans are rational animals. This is against the law of nature and humans do deviate away from rationality and choose the path of herding thereby exhibiting trends; patterns of repeatable forms / structures, making it plausible to predict the markets.
There is no chaos in this perfectly rhythmic world which is driven by the laws of nature and freely traded markets like stock markets are no exception!

Friday, January 10, 2014

Learn the tactics of investment & trading with Waves Strategy Advisors

If you hardly earn any profits in the stock, commodity or currency markets even after taking every possible precaution then Waves Strategy Advisors can be your guide to success. This Global focused independent research house provides research reports and intraday / positional trading advisory by experts that help in trading Equity, Commodity and Currency markets. It also has various training programs for individuals as well as Professionals groups. You can order the modules/video CD which explains the Elliott Wave Theory, right from the comfort of your home and they will be delivered to your desired address in a timely manner. The shipping is free in Mumbai. So place your order now at

Thursday, January 9, 2014

How to trade Silver using Elliott wave pattern?

For daily research updates visit 
Silver daily movement can look very tricky especially when it is trading in a range. But if we apply simple technical analysis method like support and resistance zone along with Elliott wave pattern the chart makes all the more sense and provides high conviction trade setup.
Now look at below Silver 60 mins chart with no markings. This looks like a random movement.
Silver 60 mins chart:
Now look at Silver chart below along with marked Support and Resistance zone and Elliott wave counts. This current ongoing pattern is double Flat corrective pattern where first Flat correction is connected to the 2nd Flat corrective pattern with wave x in between. To get more clarity apply an indicator say RSI and see the support and resistance zone for this indicator itself.
MCX Silver 60 mins chart :( March Contract)
Wave analysis:
In the morning report of “The Commodity Waves STU” which is a daily research report covering Gold, Silver, Crude, Copper we published the following:
For MCX Silver in yesterdays update we mentioned that, “any move below 44350 will continue the down move towards 43800/43700 where support is placed.”
As expected, after breaking the support of 44350, price quickly moved lower till 43600. Now, same as Gold, MCX Silver prices have arrived near the support level from where it has bounced back many times.
As shown in 60 mins chart, in yesterday’s trading session prices arrived near the support of horizontal line and consolidated for 6 hours. Opposite to Gold, the fall from 45500 to 43600 look impulsive in nature. Now, to continue the down move it is imperative for prices to move below the important support...
So what should be trading strategy from here on and the probable direction of breakout? To know the answer you can subscribe to “The Commodity Waves Short term update” by visiting and receive daily research report with charts and explanation. What more? If you have any doubts with respect to research report get in touch with us via email or on messenger and we will be keen to clarify it asap. Do not miss the next trending move that looks to have started across commodities. You can also subscribe for intraday and positional advisory and get the research reports absolutely FREE!