Bank of India had been a major dragger for many years within
the PSU banking space. Below article explains Application of Elliott wave,
Channels along with Moving average and other technical analysis studies.
Below research is picked up from “The Financial Waves short term update” dated 25th
November 2016 which contains detailed technical analysis on Nifty, Bank Nifty,
stocks.
Bank of India weekly chart:
Bank of India daily chart:
Bank of India 60 mins chart:
Wave analysis:
Bank of
India has moved higher from 80 to 130 levels over past few months however long
term chart suggest that this stock is in long term down trend and up move
witnessed in current year is only the retracement of the prior down move.
The weekly
chart since 2010 indicates that intermediate wave Y is ongoing which is forming
Triple standard correction pattern. The bounce back witnessed from 80 level in
start of 2016 is slow and corrective in nature which suggests that another wave
(x) is ongoing. Hence one should be cautious before investing in PSU banks and
should have strict stop loss. From medium term perspective, stock has
resistance at 150 level which is also coinciding with black channel resistance.
As shown in
daily chart, prices are forming complex correction pattern since the low made
near 80 level. From the start of November 2016 minute wave z is ongoing which
looks to be subdividing further.
As shown in
60 mins chart, post the steep rise from 100 to 130 levels price are showing
corrective down move. This indicates that wave b (red color) is ongoing. In
last session recovery was witnessed but move above …… is required to start the
up move.
In short,
…………..
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