Hindalco: How to trade metal stocks using Moving averages, Wave theory?

Nifty has been trading with high volatility with index cracking below previous lows after having a Gap up opening. During such times it is bests to buy the outperformers and short the underperformers.

We use Elliott wave theory along with other technical indicators like Moving averages and Channels to understand the overall maturity of the trend.

Below is the chart of Hindalco along with trading strategy which was published in daily research report – The Financial Waves short term update

Hindalco 60 mins chart: Anticipated in morning on 6^th March 2018

Happened:

Wave analysis: In today’s morning research report we mentioned the following:

Metal stocks were under pressure yesterday after the protectionism stand taken by US President Trump for basic material resources. This sends across nervous signs for metal exporting companies as their entry is discouraged in US.

As shown in daily chart of Hindalco, (shown in actual research report)

                    

As shown in 60 mins chart, prices are moving in the downward sloping red channel. s of now wave (b) is completed on upside and wave (c) is ongoing. We can expect the downtrend to continue as long as the upper trendline is protected. “Since prices are near its support trendline any pullback towards 236 levels can be used as a shorting opportunity for a move towards 225.” BANG ON!

In short, trend for Hindalco remains bearish. It is ideal to use pullback to create short position for a move towards 225.

Happened: Hindalco moved precisely as expected. Prices showed a temporary pullback toward 225 – 226 zone and made a low of 224.15 in today’s session itself. This clearly shows how combining basic technical analysis can be used along with Elliott wave can help in trading.

Based on above methods we generated few intraday calls for our Intraday traders subscribed for Stock Tips. See even when the markets went down sharply all the calls went in favor:

BAJFINANCE FUT BUY ABOVE 1659.1 SL 1651.1 TGT1 1663.9 TGT2 1671.9 – Target2 achieved

GODREJCP FUT BUY ABOVE 1094.5 SL 1089.5 TGT1 1097.5 TGT2 1102.5 – Target2 achieved

CHOLAFIN FUT BUY ABOVE 1467.75 SL 1460.75 TGT1 1472.55 TGT2 1478.95 – Booked parttp at 1471.70

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