In start of
2018 we predicted that this year Pharma and IT sector will be the out performer
and similar is being witnessed. Dr. Reddy has shown an exceptional recovery
from its low. We have been using Time cycle on various stocks as well as
indices to gauge the timings of that particular stock.
Below is the
daily chart of Dr. Reddy showing how we were able to predict when the next low
will be!
Dr. Reddy daily chart :( Anticipated
as on 22nd November, 2018)
Dr. Reddy post making a low near 2390 witnessed a
strong gap up opening and showed a whooping gain of 9% in the session of 21st
November on account of US FDA approval for its medicine, in the previous
trading session the stock closed positive by 6% and was amongst the top
gainers.
As shown on daily chart, Wave i or a is completed on
the upside near 2675 levels and currently wave ii or b is ongoing. A break
above 2675 will provide an indication that wave ii is completed on the downside
and wave iii has started on the upside. We are showing two moving averages on
the chart which is 20 periods and 40 period’s average. The short term average has crossed above the long term average
and is sustaining above it which keeps the overall bias positive as long short
term average sustains above the long term average.
112
Days’
Time Cycle: We can see that 112 day’s cycle is working well and prices witnessed an up
move each time post a low is made on cycle day. Recently also we have witnessed
the same and an up move was witnessed exactly post a low was made near the
channel support.
In short for Dr. Reddy, break above …………...for more get access to our equity report to know
what will be the next move- “The Financial Waves Short Term Update”
The above analysis shows how well this technique
works. We also provide intraday basis call on derivative as well as equity cash
segment using these techniques. To know more, Click here.
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