COALINDIA: How To Derive Targets using Elliott Wave and Price Action
Elliott wave helps us to understand the trend of the market. Coal India has continued to be showing strong up move over past few sessions. It has worked out well especially if you know how to apply Elliott wave along with technical indicator.
We published the following article on Coal India pre-market on 13th April 2023 in "The Financial Waves Short Term Update" which our subscribers receive pre-market every day.
Coal India Hourly chart as on 13th April 2023 (Anticipated):
Coal India Hourly chart as on 19th April 2023 (Happened):
Wave analysis as on 13th April 2023:
In the previous session, Coal India opened on a flat note. However, stock showed a good up move during the day. At the end of the day, prices settled with a gain of 1.81%. Also, prices are moving up by following higher high higher low fashion which keeps bias positive as long as we do not see a close below previous candle’s low. Along with this, KST has also turned above signal line. Now if it trades near zero line then further good momentum can be seen. As per wave perspective, wave b is moving on the upside.
On the hourly chart, we used Ichimoku cloud to gauge price direction. As we can see that, prices are trading above the cloud and also moving up by taking support of the base line(red). For now, any dip towards the base line can be used as a buying opportunity i.e. towards 224 levels. Currently, intermediate wave c is moving on the upside which opens possibility of a flat pattern.
In a nutshell, Coal India looks sideways to positive. Use dips as a buying opportunity for a move towards 234 as long as 220 holds on the downside.
Happened
We can see that wave counts have helped us to find out the trend reversal for Coal India well in advance. After completing wave b near 222 levels we had mentioned possibility of up move in form of wave c and the stock moved as we expected. After publishing the report, within three trading sessions stock has achieved our target. As we expected after a dip the stock has made the high of 234.6 levels.
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