RSI indicator is one of the most preferable momentum oscillators. We have
been using this
indicator across segments to gauge the price movement. Below is the
extract taken from our monthly report published under the name of “The Financial Waves Monthly Update”
ITC Daily chart (showed on 5th
September 2018
Wave
Analysis:
As shown on the
daily chart, minor degree wave iii of [3] is completed on the upside. The
ongoing correction is in the form of wave iv which is forming Complex
correction pattern. Wave b is ongoing currently which looks to be forming
Triangle pattern. Post completion of wave b we can expect wave c on the
downside. ………. can be adopted to capture the trend in the form of wave …………..
RSI indicator: The Relative Strength Index indicator is a momentum
indicator that measures the magnitude of recent price changes. It is normally
used to analyse the oversold and overbought zones for a stock. If we look at
the RSI indicator plotted on the daily chart we can see that every time prices
reach near 77 zone a sideways to downside action is witnessed which indicates
the overbought zone for this stock is 77. The oversold zone for the stock is
near 31. Such basic techniques can provide early trend confirmation.
In a nutshell,
trend for ITC is positive and we can expect the stock to eventually move
towards …..levels. However, short term correction is possible before we witness
an up move. Use ……….. opportunity…….
So, what should
be investment strategy on ITC? Subscribe to “The Financial Waves Monthly
update” and see detailed analysis on stocks, Nifty, Bank Nifty, currency,
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