Nifty has been moving with high volatility so
creating a proper trade set-up at such times becomes difficult. Moreover
booking profits and having a proper risk management becomes important to
protect the capital. We have been able to capture moves in various stocks using
different indicators and Elliott Wave coupled with other techniques.
LIC Housing Finance is yet another stock wherein we
were able to create a trade set-up with the help of Elliott Wave and the ADX
indicator. Below is the chart published in our daily report “The Financial Waves STU”.
LIC
Housing Finance Daily chart:
LIC
Housing Finance 60 mins chart: Anticipated as on 11th September 2018
LIC
Housing Finance 60 mins chart: Happened as on 14th September 2018
(Below
is the extract of research published in the report)
We have shown ADX indicator on daily
chart that displays strength of the trend and also confirms the direction with
the help of +DI (Directional Indicator) and -DI. If +DI crosses above the –DI
it indicates that the direction of the trend is positive. The +DMI (green) is
moving below –DMI (red) suggesting negative move. If we observe well whenever
the distance among these two lines increases we see continuous downwards
movement and when they are nearing convergence we see range bound movement.
Here we are witnessing the former scenario, hence further downmove is expected.
As
shown in the hourly chart, prices are currently moving in wave iii of (c).
Also, the EMA and channel are working very well and one can make use of the
channel support and resistance for taking short-term positions. Any pullback
can be used as a shorting opportunity for capturing a move towards 480.
In
short, LIC Housing Finance looks negative. Any pullback towards 490 can be used
as a shorting opportunity for a move towards 480 levels. The level of
500 can be used as short-term resistance.
Get access to “The Financial Waves short term update”
and “Multibagger research report” to
have a complete list of stocks that looks good right from short term trading to
long term investments. Know more here
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