CNXPharma

CNXPharma is a potential short candidate for the following reasons:

• The primary wave 2 is ending at .5 fib level of beginning of wave 1. The fib level 1.618 level is indicating 8325 region where wave 3 should terminate.
  
• The intermediate wave 2 is also beginning at the .382 level of wave 1 and is indicating 8360 region where wave 3 could potentially terminate.
  
• The minor wave 2 is also beginning at .382 region of wave 1 and is indicating 9058 region where the the wave 3 could potentially terminate.
  
• It should be pointed out here that both primary and intermediate waves area for wave 3 terminate in the same approximate region.
  
• 9880 is an important support region as the market had tried to break the support 2 times already and the current market price being 9935 is very close to try to break this region again. A break below would bring shorting on the counter. This is also end of minor wave 1.
  
• At current minute wave inside minor wave 2 is being unfolding. It is possible the market reverses at the support line however it is unlikely at that it will go and break above 10330 area since it is the starting of wave 2 and end of wave 1. This would invalidate wave count of minor wave.
  

How to short CNXPharma
A break below 9880 region could be used as a good entry point where first target could be 9058 region where minor wave 3 could potentially terminate. Here again our stoploss is end of minor wave 1 which is an important support zone of 9880.

It would seem that we are targeting completion of minor wave 2 as the possible SL for minute wave 2 is far to make reasonable RR. The price would need to be EOD

Trade closed: target reached:

Very close to the target. With a small margin we can assume that this trade is successful.