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.
Happy Trading - powered by www.wavesmantra.blogspot.in
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.
Happy Trading - powered by www.wavesmantra.blogspot.in
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