Tuesday, December 10, 2019

ZEEL: Classic Diametric pattern with channels and EMA

Zeel had been moving in a rising channel since October 2019 but  using the Diametric pattern in neo waves coupled with simple tools like EMA we could forecast  that the stock was about to break below the channel and use this as an opportunity to short instead of expecting a bounce from the channel support.
Look at the below chart of Zeel published in the equity research report on 2rd December morning before markets opened – The Financial Waves short term update
Zeel 60 mins chart: (Anticipated as on 02nd December 2019)
Zeel 60 mins chart: (Happened as on 10th December 2019)
Wave analysis: Following was mentioned on 02rd December when the stock was near 291 levels.
As shown on daily chart, post rising steeply and breaking above the channel prices are now witnessing severe selling and re-entered the channel. As per the wave theory wave (C) of the intermediate degree is ongoing in the form of ending diagonal pattern. Within which wave (iv) is in progress in the form of Diametric pattern.
On the hourly chart, selling was seen in the last hour of the session the stock fall steeply and made its intraday low near 284 levels. Given the fall some sideways movement cannot be denied. As long as EMA is intact on upside we might continue with negative bias. As per wave counts wave f of the pattern is unfolding on downside.
In short, trend for Zeel seem to be negative for now. A break below the channel near 275 levels can allow prices to move towards 265 or lower levels.
Happened: Prices moved exactly as expected it break below the channel and made intraday low near 270 levels.
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