Tech Mahindra: Trading the 5th Elliott wave pattern!

For Tech Mahindra, below chart is one of the perfect examples of how impulsive waves look like. 

When minor wave iv competed at 1980, we were waiting for prices to give positive price confirmation for the start of minor wave v. On 26^th June 2014 we got confirmation and published the research on the same.

Tech Mahindra 120 mins chart: (Anticipated on 27^th June 2014) 

Tech Mahindra 120 mins chart: (Happened on 30^th June 2014)

Elliott Waves Analysis:

Anticipated on 27^th June 2014:In past we have observed that whenever Nifty shows weakness,CNX IT picks momentum on upside. In yesterday’s trading session stocks like Tech Mahindra,Wipro, HCLTech were up more than 1.5%. In today’s report we have picked Tech Mahindra as it broke above its crucial resistance.

As shown on 120 mins chart, prices have again bounced back by taking support of 50 periods EMAhence till its intact we can expect prices to move higher. As per Wave perspective, prices completed minor wave iv at 1980 level and currently moving higher in wave v. The stock is also moving in rising blue channel which is adding to the positive scenario. Now, as long as 1980 is protected on downside trend remains positive over short to medium term.

In short, for Tech Mahindra our view is bullish. Any move above 2060will infuse buying pressure and prices can easily move towards 2100 level which is 61.8% of minor wave iii.

Happened: Tech Mahindra is already up and has now moved past 2100 level as well. The stock is currently quoting at 2150. So what should be trading strategyfrom here?

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