Where is LIC Housing Finance headed? Will it reverse on upside?

Where is LIC Housing Finance headed? Will it reverse on upside?

Nifty has continued to hit life time high levels with strong euphoria. However, not all sectors have been contributing in the ongoing up move.

Housing Finance sector which was darling for traders and investors few weeks back is now going through some short term correction.

The below research was published in our daily equity report “The Financial Waves short term update” that showed LIC Housing Finance daily chart as well in addition to below hourly chart.

LIC Housing Finance 60 mins Chart:

Elliott Wave analysis: (picked up from the research published today morning)

Housing Finance sector as a whole has been going through profit booking from last few weeks. In this sector, LIC Housing Finance is one such stock has been going through downward correction since June 2017. In case of any weakness in broader markets, this stock can move lower sharply.

The weekly chart (shown in actual research report) shows that the up move ongoing from the mid of 2013 is corrective in nature and it has been forming Zigzag correction pattern. In the month of March 2016 intermediate wave B completed its course and since then intermediate wave C is running its course. The fall witnessed from 796 to 596 has overlapped with wave i territory which indicates that Ending Diagonal Pattern is under formation. The ongoing fall is in form of minor wave iv which has arrived at the channel support but yet there are no signs of reversal. From last 8 trading session prices have failed to close above prior bars high which suggests ………….

As shown in 60 mins chart, prices have been forming double correction pattern and as of now minute wave c of second correction pattern is ongoing. As per the channeling technique, prices have lot more room to cover on downside and hence any pullback is going to provide shorting opportunity as long as ….. is intact on upside.

In short, LIC Housing Finance trend remains on ………. and prices can move towards …. level where channel support is placed.

Charting Tool: Plot your chart on LIC Hosing Finance

The above chart shows how we can apply Elliott wave along with other technical analysis method. You can get access to “The Financial Waves short term update” our flagship research report on Nifty, Bank Nifty and stocks that give trade setup using Elliott wave and various indicators. Subscribe NOW