Topping Time cycles & A BIG Triangle pattern – Reliance Infra

Topping Time cycle of 126 weeks has been working very well to provide important tops on Reliance Infrastructure. Look at the detailed Elliott wave counts in this research…

“The Financial Waves Short Term Update” covers Nifty and 3 stocks with in-depth research on daily basis. In today’s report we have covered long term picture of Reliance Infrastructure and part of the same is shown here. Below chart also shows power of Time cycles.

Reliance Infrastructure Weekly chart:

  

Wave analysis:

Reliance Infrastructure is a classical example that shows how weakly a stock can underperform. This stock made a high near 1400 levels in year of 2009 and even now it is trading near around 550 after touching a low of 280 in 2015. This clearly shows that the strategy of Buy and Hold will not necessarily work for all the stocks. The same is true even for index heavy weight Reliance Industries. It has been more than 8 years since this stock has given any returns to investors (until today J)

Reliance Infra has been moving in a big contracting pattern which looks like a Triangle since 2008 onwards. The entire structure has been in corrective fashion with each leg smaller than the earlier one. The primary wave (E) itself looks to be forming a triangle and prices are now in wave (b) of this triangle. Post its completion we should see a strong move on downside back towards 400 levels. Also the rise in wave (b) is clearly in overlapping fashion which adheres to our Triangle pattern assumption.

From the start of February 2017 prices are moving higher in form of minute wave c which is forming an Ending Diagonal pattern. Momentum has been failing to pick up and so any reversal below ….. will be a bearish sign as it will break…..

The strategy for above stock is shown in original report which is not shown here. To know the outlook on Nifty and stocks, subscribe to “The Financial Waves Short Term Update”

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Time cycles are important aspect that cannot be ignored if you are a Trader or a Technical analyst. A right trade but wrongly timed can be disastrous. At the same time, Cycles are very challenging to predict and they go away without providing any signals. It is therefore extremely important to combine both Time cycles with Price forecasting techniques like Elliott wave and Neo wave. Attend the two days of exhaustive training on Combining Time cycles with Neo wave to be held on 18^th and 19^th March 2017 in Mumbai. Learn more