Technical analysis applied on stocks – ICICI Bank. The below research shows application of Elliott wave, Time cycles, Channels and MACD.
Stock market exhibits the cyclical nature and to understand the same we apply different Time cycles to know if important top or low is in place or not. As per Hurst’s Time cycles, capturing the low can be easier than top as distribution process takes time and hence validity of cycles can be in question.
Nevertheless we follow normal cycles also which works well on particular stock or index. Below we have shown example of ICICI Bank which is taken from “The Financial Waves Short Term Update” which was published in today’s morning report. Here we have shown 69 days Time cycles which is working as topping cycle since April 2016.
Isn’t it interesting to see that how precisely this stock is following time cycles?
ICICI Bank daily chart:
(Part of research published today morning)
Wave analysis:
“Stocks like Axis Bank and ICICI Bank has been moving in non trending environment from last few days. Looking at the short term structure of these stocks and failure of Bank Nifty to generate the upside momentum, there is high probability that distribution might be under process. However it is better to wait for price confirmation which will guide the trend ahead.
As shown in daily chart ICICI Bank, it has been trading in expanding structure since April 2016 and from last few days prices are moving in the range as it has tested the important trendline resistance. Along with this, Time cycle of 69 days which has formed crucial tops and this time also cycle looks to have worked well as prices have not taken out resistance area. MACD is already showing negativity as it has given sell signal. Now break below pivot low will confirm that downside trend has started.
(60 mins chart is not shown here which shows internal wave structure)
As shown in 60 mins chart, prices have till now completed double correction pattern and post that some pressure has been witnessed in last few sessions. The current downfall has broken the channel support and move below …… will indicate that retracement on downside in form of minor wave … of third standard correction has started.
In short, ………….
Elliott wave, Time Cycles and other basic technical concepts can help traders to form trading strategies with prudent risk reward ratio. Get your copy of “The Financial Waves Short Term Update” which covers in-depth research on Nifty and 3 stocks on daily basis.
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