How to catch Momentum using ADX and Cup and Handle formation

 While trading the market it is important to understand the behaviour of the market. Simple strategies like price patterns can be combined with simple indicators like ADX (Average Directional Index) to achieve powerful results. Check out how we selected JUBLFOOD which has rallied more than 4% in just one trading sessions.

We published the following research on JUBLFOOD pre-market on 1^st January 2025 in the "Vayu Momentum Report” which our subscribers receive pre-market every day.

JUBLFOOD Daily chart Anticipated as on 1^st January 2025
Analysis Anticipated as on 1^st January 2025

On the daily chart, stock has protected its prior day’s low since 20th December which keeps the daily bias in favour of the bulls. Along with this, stock has formed a cup and handle pattern. Price has closed above 712 which confirms breakout of the said pattern. On the daily chart, ADX is suggesting strong momentum can continue in this stock as it is showing readings of 30.30 which is above 25.

In a nutshell, the current trend for JUBLFOOD is on the positive side. A breach above 725 is must for buying to continue with the targets of 750 followed by 780 levels. On the downside 690 is the nearest support.

Trading Strategy for intraday futures: Long positions can be created above 722 with the stoploss of 711 and targets of 732 followed by 743.

JUBLFOOD Daily chart happened as on 2^nd January 2025
Happened: The stock moved as we expected. JUBLFOOD has given a breakout of Cup and Handle with huge volume which was a bullish sign. The stock showed a sharp rise of more than 4% after breaching above 722 levels in just 1 session. Now it has the potential to achieved our final target of 780 in the coming sessions.

We successfully captured an upmove and both the targets were achieved in future segment as well!

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Multibagger Stock: M&M 80% move in just 10 months!!

 We published about Mahindra & Mahindra in our Jal Multibagger stock report and predicted the possibility of multi-bagger returns in the coming 1-2 years. Check out the below research we published on 22nd February 2024.

This stock has managed to hold its gain and gave more than 80% returns in 10 months of span and made a life time high of 3222 levels. 

Mahindra & Mahindra Weekly Chart anticipated as on 22^nd February 2024.

Mahindra & Mahindra Daily Chart anticipated as on 22^nd February 2024

Wave Analysis as on 22^nd February 2024:

Multi-bagger stock recommendation: Mahindra & Mahindra

Buy Price – Buy at CMP 1910 more on dips

Time Horizon –1 to 2 years

Investment – 5% of capital

Target price –??

Stop loss - ??

Anticipated as on 22^nd February 2024 – Elliott Wave Theory:

Mahindra & Mahindra is an Indian multinational automotive manufacturing corporation headquartered in Mumbai. It was established in 1945 as Mahindra & Mohammed and later renamed Mahindra & Mahindra. Part of the Mahindra Group, M&M is one of the largest vehicle manufacturers by production in India.

Let’s us understand view for M&M with the help of advance technical tools. As per wave perspective, stock is following classic Elliott wave theory. Wherein, primary wave (4) got completed near 245 levels and currently wave (5) is ongoing. This is one of the reasons why we have seen strong outperformance by this stock in the current rally. Furthermore, this wave (5) has been sub-divided into 5 waves, of which wave 3 of iii is ongoing.

We can observe from the above chart, that the Multi month trendline has proven to be effective. Since it has consistently offered support. Prices recently found support at that level, and a strong rebound was observed. Apart from this, KST indicates that strong momentum is likely to continue because it is trading above the zero-line following the crossover.

Mahindra & Mahindra Weekly chart happened as on 1^st January 2025

Happened:

The stock has been moving in sync with our expectations. After a dip, stock has shown sharp rise on the upside which is overall 80% from the lows in just 10 months of span!!! Stock has touched its fresh record high near 3222 levels recently and currently it is quoting near 3065 levels. The overall up move has been strong and we expect prices to achieve its target of...levels in comings months.

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GREAVESCOT: Combining Rounding Bottom with ADX.

 It is possible to capture massive stock moves using price patterns along with simple indicators like the ADX (Average Directional Index). 

ADX- The average directional index (ADX) is a technical indicator used by traders to determine the strength of a trend. It commonly includes three separate lines. These are used to assess whether momentum is building on the stock or not.

We used these 2 indicators on Greaves Cotton and captured a massive 17% move in just one trading session. It's impressive how combining these simple indicators with price patterns can pinpoint momentum stocks for short-term trades, leading to substantial returns. 

We published the following research on Greaves Cotton Ltd on 30^th December 2024 in the “Vayu Momentum Report” which our subscribers receive pre-market every day.

Greaves Cotton Ltd Weekly Chart anticipated as on 30^th December 2024.
Wave Analysis as on 30^th December 2024:

Greaves Cotton Ltd. showed sharp rally in the previous session of more than 19% in a single trading day! The stock has formed a rounding bottom pattern. Price has closed above 259 which confirms the breakout of the said pattern. On the weekly chart, ADX is suggesting strong momentum can continue in this stock as it is showing readings of 31.88 which is above 25. For now, one should use buy on dips approach to ride the trend

Key Resistance: 305

Key Support: 266

Strategy: Use dips towards 275-279 as a buying opportunity for a move towards 300-305 levels as long as 266 holds on the downside

Greaves Cotton Ltd Hourly chart happened as on 31^st December 2024
Happened: The stock has moved as we anticipated. Prices showed a rise of more than 17% from the lows and not only achieved our targets but also breached above it and made a fresh high of 319.50 levels in just one trading session!! It is fascinating to see how accurately combining basic indicators along with price can help to predict price targets with accuracy.

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GOLD – Bang on using 51 period Time Cycle.

 Time Cycles is a very important Technical Analysis study and is surprising that such basic concepts are rarely focused by traders. When we combine Time cycles with Wave theory we can see witness interesting results.

See how we captured this entire fall of nearly 1700 points even before it started in Gold with the help of Time cycle, Elliott wave and simple price indicators. Gold achieved both our given targets and moved way below it. Following research is picked up from our Monthly Report.

MCX Gold Daily chart with 51 Days’ Time cycle: Anticipated on 14^th December 2024
MCX Gold Daily chart: Anticipated on 14th December 2024.
Gold historical performance: Anticipated on 14th December 2024.
Wave Analysis as on 14^th December 2024:

During the month of November Gold witnessed rally of more than 5% from the lows. During this whole year Gold surged more than 25% i.e. from 63600 to 79700. It has been a strong run for gold in 2024 suggesting that this asset class holds significant importance in an investor portfolio. The main reasons behind this rise were the continuous buying of gold by the global central banks, rate cuts by the US FED, and the geopolitical uncertainty in the global markets. Now let us understand the current outlook for Gold from a technical perspective.

51 Days’ Time cycle: Time cycle continued to work as magic for capturing lows. Recent low was also made exactly on our cycle near 74850 on 24th November. Prices showed rally of more than 3900 points. The next cycle is due by 6th February 2025. Until then the cycle low of 74850 should remain protected on the downside.

On the daily chart, On the above chart we can see that after 3 days of continuous long run, Gold is now witnessing profit booking. However, the Daily cycle is intact on the positive side so the overall medium-term tone remains positive as long as cycle low is protected on the downside which is near 74850 levels. Prices witnessed rejection from the upper Bollinger Bands®. We can expect profit booking to continue towards the mid bands which is located near 76700 levels before a fresh rise towards fresh high begins!

MCX Gold Elliott wave perspective: As per wave perspective, currently wave (3) of [5] is unfolding on the upside. Wherein, wave (3) has retraced more than 38.2% of wave 1. The next target is near 79300 which 50% retracement followed by 80800 which will be 61.8% retracement.

In nutshell, after sharp rally now Gold is witnessing profit booking. For now, a break below 77200 will extend profit booking towards the mid Bollinger Bands® which is at 76700. A breach below it will be a sight of concern. On the upside a break above 77800 followed by 78200 is must for upside momentum to resume with the targets of 79300 followed by 80800 levels. Next few days price action is important as it will help to clear short term picture.
MCX Gold Daily chart with 51 Days’ Time cycle: Happened as on 30^th December 2024
Happened as on 30^th December, 2024

As we anticipated in our monthly report about possible profit booking in Gold once it breaches 77200 levels and bang on!! Gold witnessed a fall of more than 1700 points and made a low of 75459 levels. Gold also achieved our given targets in just a matter of 2 weeks since the report was published.

For now, Gold is consolidating near the trendline support. A break above 77400 is must for fresh buying to emerge. While on the downside a break below 76000 can resume selling.

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