Auropharma: Elliott wave to capture downside!

Pharma sector has been bearish since start of the year and it has continued to underperform overall market. It is important to understand the topping process which can then be used for shorting opportunity to capitulate the down move. The below research shows how Elliott wave helped us to capitalize the sharp fall!

Auropharma 60 mins Chart: (Anticipated on 18^th May 2018)

Auropharma 60 mins Chart: (Happened on 21^st May 2018 )

(Part of research taken from The Financial Waves Short Term Update dated 18^th May 2018)

Wave Analysis:

We can observe that Auropharma has been moving in corrective pattern since 2016. According to wave perspective, bigger degree wave Z of the third standard correction is ongoing which is forming a double correction pattern. As shown on 60 mins chart, the on-going wave c is forming an Ending diagonal. We can see that prices completed wave iv of wave (c) near 620 levels and wave v is ongoing which validates further fall over short term. Prices are moving in an expanding structure and have reversed from the upper trendline. The downward move should continue towards lower levels of 580 as long as 610 is intact on the downside.

In short, the outlook for Auropharma is bearish and a move towards 580 looks plausible as long as … is intact on the upside. 

The above analysis proves how well the Elliot wave to understand trend. It helps to trade different stocks along with index like Nifty, Bank Nifty etc. Get access to “The Financial Waves short term update” and see yourself what will be the next move.