Yes bank has been a major laggard in the banking space since a long time. Post testing the high of 286 in April 2018, the stock has been moving in a downtrend without any signs of recovery. We were able to capture today’s fall by applying Elliott wave patterns combined with Fibonacci Extension, EMA, and Channels.
Zigzag correction is 5-3-5 pattern one of the powerful pattern where wave a should be in form of 5 waves & then wave b should not retrace more than 61.8% retracement of prior move. Also there is tendency for wave c to move below the end of wave A.
The Fibonacci extensions show how far the next price wave could move following a pullback. It is also used to derive target levels. Common Fibonacci extension levels are 61.8%, 76.4%, 100%, 161.8%. Look at the chart of Yes Bank on daily time frame and see how prices have moved in sync with the Fibonacci extension levels.
The exponential moving average is sensitive to recent price changes and one can get the idea of the strength of a trend by looking at the slope of the moving average.
Below is the chart with detailed analysis published in our daily report- “The Financial Waves short term update”
Yes Bank Daily chart: (Anticipated as on 05th September) when price was at 59
Yes Bank 60 mins chart: (Happened as on 30th September) touched lifetime low of 41.35
Anticipated as on 05th September – The prices are moving in a downward slopping channel and are now placed near the resistance shown in the short term chart. We are currently moving lower in the form of wave c of ongoing Zigzag pattern. We can expect the prices to move towards the 100% level of wave a extension that happens to be placed near the 44 level. BANG ON!
On the hourly chart, we can see 50 EMA acting as strong resistance to prices and for any positivity break above this resistance near 63 on closing basis is required. We are currently moving in the form of wave (v) on the downside within which smaller degree wave iv is ongoing. Break below 53.30 will resume downtrend in form of wave v towards 48 or lower levels.
In short the trend for Yes Bank seem to be sideways to negative with the immediate resistance placed at 63 and the support placed at 53.30 level. A move below the 53.30 level will take the price lower towards the 48 followed by 44 levels provided the resistance of 63 is held intact on a closing basis.
Happened as on 30th September – Prices moved exactly as expected and post testing the 50 EMA; the stock broke its important support of 53 on closing basis & moved lower to form another 52 weeks low near 41.35 levels.
We cannot be more accurate than this. The above research shows how well Elliott waves work and how different tools could help in deriving the exact entry points and targets for the same. Get access to the daily equity research report & capture good trading opportunity over short term “The Financial Waves short term update”- Get access here
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Below are the intraday, positional calls given for today:
30/09/2019 – NIFTY FUT SELL BELOW 11533 SL 11603 TGT1 11498 TGT2 11428
Happened: NIFTY FUT TGT1 ACHIEVED
30/09/2019- BANKNIFTY FUT SELL BELOW 29766 SL 29966 TGT1 29666 TGT2 29466
Happened: BANKNIFTY FUT TGT 1 & TGT 2 ACHIEVED
30/09/2019- RBLBANK FUT SELL BELOW 328.1 SL 331 TGT1 326.3 TGT2 323.4
Happened: RBLBANK FUT TGT 1 & TGT 2 ACHIEVED
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