Hindalco - Path ahead
Daily Chart -
* Since Feb 2012, Hindalco stock price is running in the falling wedge which is bullish sign.
* Per Elliott wave theory, this falling wedge counted as complex corrective pattern WXYXZ.
* Last leg of the corrective pattern looks to be completed on 7 Aug 2013
* On the same day, RSI was given + positive divergence seen Daily & weekly chart.
* Price rallied from a low 8,3 after breaking important resistance made high 119.70 on 19 Sep 2013.
* Price closed above the top resistance line XX and I feel this was again sign of trend reversal and 1 leg of the next major trend.
* But, This upmove seen with negative divergence with Volume so price should consolidate here for few days before start of the new leg.
* Important to watch here that price should sustain here and break above the 120 & then 137 with high volume to take fresh position in the bullish trend as per individuals RISK appetite. This is valid until the price will not break below 96.
* Alternative scenario was that there could be 1 leg is still pending on downside considering corrective nature of the complex pattern. But this alternate, less probable scenario and this will not valid after decisive breakout above 134.
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