ICICI Bank: Neo wave Extracting Triangle Pattern and Topping Time cycles!

Identifying the Neo wave pattern and Time cycles to understand the trend of ICICI Bank.

Neo wave is the advanced Elliott wave concept has more than 15 rules which should be followed for impulsive waves. If one of the rules is not met then pattern is simply corrective in nature. Neo wave has introduced a few newer patterns which is not covered in Elliott wave such as Diametric pattern, Neutral Triangle pattern, Extracting Triangle pattern. These all patterns are corrective in nature and have different rules. Below we have shown daily chart of ICICI Bank which shows that second correction is forming Extracting Triangle pattern. Here we can see that downside legs are getting bigger whereas upside legs are smaller in nature. Apart from that there is 70 days Time cycle which is working as topping one from the start of 2016. Below we have shown part of research taken from “The Financial Waves Short Term Update”.   

ICICI Bank daily chart:

 Wave analysis:

“As shown in daily chart of ICICI Bank, since 2016 this stock has continued to move in an upward moving channel. This time prices have failed to reach towards the channel resistance and have started to show weakness. Moreover this reversal has taken place when 70 days Time cycle was due in last week. This cycle has worked as important topping cycle in the past occasions and hence one should not ignore the same. In the current week prices have taken out low of prior week’s lows which will keep bias on negative side. MACD is also moving below signal line which indicates bearishness.

(The internal wave counts is shown on 60 mins chart which is shown in original report)

As shown in 60 mins chart, recently prices have broken the blue channel support and as of now hovering around the same. The fall was sharp in nature which increases the odd that minute wave (e) of minor wave e might have completed. Prices have also formed tilted Head and shoulder pattern which is a reversal pattern and forms during the stage of distribution. On upside ……. is the important resistance.

In short, ICICI Bank is now at important levels. Close below ….followed by break of low of wave (d) near ….will confirm the bearish outlook. Please note breaking of pivot support levels is important in the current market scenario.”

To know in-depth research on Nifty and 3 stocks on daily basis subscribe to “The Financial Waves Short Term Update”

Training on Time cycles using Gann, Hurst’s method combining with Neo wave – Advanced Elliott wave – Attend the two days seminar on 18th and 19th March 2017 – Most advanced technical analysis training ever. These methods are not easy to implement so you can share across your charts and findings on our Discussion Forums and get inputs to keep the learning ongoing in most practical ways. More details on Neo wave and Time cycles. Few Seats left. This can be one of the best investments you can make!

Gann Square of Nine Time cycles applied on Nifty

Below research highlights application of Gann square of nine along with 35 days cycle on which there has been a big red candle formation. 

W. D. Gann found various unorthodox methods in order to forecasts the markets. He had amazing records showing gains across asset class – Equity, Commodity, Agri and more. There are various different methods followed and I am showcasing one of them shown below in order to time the markets. For price confirmation and patterns I prefer using Elliott wave, Neo wave methods and for Timing we can rely on one of Gann’s method shown below.

Nifty daily chart with Calendar days

The above chart shows Gann time cycles followed on the 90 degree on Square of Nine. You can read our earlier post on Square of Nine.  These Gann cycles are applied on Calendar days and not trading days. It helps to understand short term reversal for few days and at times major tops or bottoms. From the above chart we can clearly see that 190^th day marked very important top for Nifty post which the downtrend started. As of now from the lows of 7900 levels we have continued to see alternate period tops and bottoms. These tops and bottoms are not that major but have still resulted into 2 to 3 days of reversal. Nevertheless it helps in timing the market. Even the recent lows as per Gann cycle resulted into two days of up move.

35 days Time cycle: This cycle marked on the calendar chart of Nifty shows a big red bar formation every 34^th or 35^th day. Infact on all of the occasions Nifty opened higher on these days and closed negative forming a big red candle.

These are minor observations but very important as it helps to time the market probably to the day. We do not use only Time cycles but combine them with pattern analysis using Neo wave – Advanced Elliott wave methods. Also Hurst’s time cycles help us to find important tops and bottoms and intermittent movement can be found using Gann cycles.

Simply imagine the power if we are able to understand the pattern under formation using these cycles and combining it with Neo wave. Forecasting is all about probability and cycles are always tricky as they can vanish without prior indication but when they works in sync that is the scenario to go all in!!!

Training on Time cycles using Gann, Hurst’s method combining with Neo wave – Advanced Elliott wave – Attend the two days seminar on 18^th and 19^th March 2017 – Most advanced technical analysis training ever. These methods are not easy to implement so you can share across your charts and findings on our Discussion Forums and get inputs to keep the learning ongoing in most practical ways. More details on Neo wave and Time cycles. Limited Seats available. This can be one of the best investments you can make!

Nifty Fractal Nature worked brilliantly! What is next?

Understanding the Nifty trend with Fractal nature along with Elliott wave, Channels and RSI!

What is Fractal Nature: Nature exhibits Fractal nature across the universe. This nature is exhibited even by stock markets. Similar patterns are repeated across different degrees of time which is termed as Fractal Nature.

Based on the same concepts we published research on Nifty identifying Fractal nature on 60 mins chart. The part of the same is taken from “The Financial Waves Short Term Update” published on 17^th February 2017.

Nifty 60 mins chart: (Anticipated in the morning of 17^th February 2017)

 Nifty 60 mins chart: (Happened till now)

(Part of research taken from 17^th February 2017)

Wave analysis:

“On Nifty, the pattern seen over past few days look very similar to that seen during the previous wave x formation. This is highlighted on the hourly chart. It is interesting to see how closely both the patterns resemble. The previous wave x formed a low near 8327 on 23^rd January. During this move as well, the fall was sharp but only to form wave x. Failure to see follow-up selling below previous day low the chances of another wave x formed at the lows near 8715 is high. If Fractal nature is into play then we can expect a break on upside like the ones seen in earlier pattern.

For a trader it is not easy to change the stand very quickly. But in this dynamic environment when markets are moving very fast it is best to adapt to the new price information as quickly as possible. In case Nifty manages to decisively break above 8825 resistance zone we can expect sudden spurt on upside due to short squeeze and fresh long build up.”

Nifty gave a positive breakout as expected and prices moved from the levels of 8760-8770 to recent highs of 8980 based on Fractal nature. In the current market trailing stop method is the ideal strategy to capitalize the trend as long as it goes!

To know the Elliott wave pattern along with important levels on Nifty and 3 stocks, subscribe to “The Financial Waves Short Term Update” and selecting the Equity research report Services

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Topping Time cycles & A BIG Triangle pattern – Reliance Infra

Topping Time cycle of 126 weeks has been working very well to provide important tops on Reliance Infrastructure. Look at the detailed Elliott wave counts in this research…

“The Financial Waves Short Term Update” covers Nifty and 3 stocks with in-depth research on daily basis. In today’s report we have covered long term picture of Reliance Infrastructure and part of the same is shown here. Below chart also shows power of Time cycles.

Reliance Infrastructure Weekly chart:

  

Wave analysis:

Reliance Infrastructure is a classical example that shows how weakly a stock can underperform. This stock made a high near 1400 levels in year of 2009 and even now it is trading near around 550 after touching a low of 280 in 2015. This clearly shows that the strategy of Buy and Hold will not necessarily work for all the stocks. The same is true even for index heavy weight Reliance Industries. It has been more than 8 years since this stock has given any returns to investors (until today J)

Reliance Infra has been moving in a big contracting pattern which looks like a Triangle since 2008 onwards. The entire structure has been in corrective fashion with each leg smaller than the earlier one. The primary wave (E) itself looks to be forming a triangle and prices are now in wave (b) of this triangle. Post its completion we should see a strong move on downside back towards 400 levels. Also the rise in wave (b) is clearly in overlapping fashion which adheres to our Triangle pattern assumption.

From the start of February 2017 prices are moving higher in form of minute wave c which is forming an Ending Diagonal pattern. Momentum has been failing to pick up and so any reversal below ….. will be a bearish sign as it will break…..

The strategy for above stock is shown in original report which is not shown here. To know the outlook on Nifty and stocks, subscribe to “The Financial Waves Short Term Update”

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Time cycles are important aspect that cannot be ignored if you are a Trader or a Technical analyst. A right trade but wrongly timed can be disastrous. At the same time, Cycles are very challenging to predict and they go away without providing any signals. It is therefore extremely important to combine both Time cycles with Price forecasting techniques like Elliott wave and Neo wave. Attend the two days of exhaustive training on Combining Time cycles with Neo wave to be held on 18^th and 19^th March 2017 in Mumbai. Learn more