Jet Airways Ltd. On Friday posted a nearly 70 percent fall in its third quarter net profit at Rs 142.38 crore as a steep rise in fuel costs and other expenses took a toll on its bottom-line. The full service carrier had a net profit of Rs 467.11 crore in the year-ago period.
Technically, we traded this turbulence price wise & I never knew that Jet is going to post jumbo fall in its net profit.
The bounce from 333-336 zone -a double bottom zone to 425 was a large corrective structure- Wave X. In the last update -it was suggested that going below 410-413 zone -putting stops@419-once it slips below 410. As soon as it slipped below the desired level, it travelled all the way to 397-400 zone initially & later extended to 375 which was recent low. A trader who can take risks & manage it properly (risk management) by trailing the stops could reap huge profits, but unfortunately we should believe what has happened & not what could have happened.
The fall from 425 to 375 -looks impulsive in nature & getting rejected in the 375-377.
What Next? Keeping 375 as support in the coming session, we can expect sideways to positive bounce to the zone of 393-400 in the upcoming week. Once done, I shall come back again later.
You would also love to read my previous analysis as mentioned below(click the charts) Jet Airways -Bigger Triangle (Interesting half of year 2017)
Jet Airways - Going below 515 & 507 - down leg to start
Jet Airways - Bigger Triangle - Interesting Half of Year 2017
Going below 515-507 - down leg to start- Enjoyed the surgical strike
Trade active
⋅
10:53 Hrs 6th Feb2017
Last Price@374.70
375 did not hold & made a low@363.85 so now we will wait for the price to cross upside of falling trendline -once it does -then it travels to 395-400 zone where we need to inspect what next.
Trade active
⋅
10:59 Hrs 7th Feb2017
Last Price@382
It crossed the trendline & got an opportunity between 376-378 -Now we will trail the stops to cost so we do not lose anything & just gain only in the zone 393-396 is the target zone.
Trade active
⋅
10:40 Hrs 8th Feb2017
Last Price@380.40
Jet is struggling at the moment between 380-383 Likely can retest falling trendline & take support in the zone 365-368 then likely we think to buy with stops below 363 & target 393-396 or sustaining above 383 -we will look to buy for target zone 393-396.
Trade active
⋅
12:37 Hrs 8th Feb2017
Last price@376.50
We are in the sell trade
Awesome - It falls from 380-381 zone -------Hurray!!!
Trade active
⋅
17:27 Hrs 8th Feb2017
Pre Action Screen Image for Jet
Trade active
⋅
17:28 Hrs 8th Feb2017
Last Price375
Day Low@372
Post Action Screen Image
Trade active
⋅
17:29 Hrs 8th Feb2017
Closing Price@375
Day Low@372
As expected in the update@10;40 Hrs today@8th feb2017 when it was trading between 380-383- expected that likely it retest the trendline - Bang On! indeed it went close to 372.
Kissed the zone 365-368 - Shall wait to see the market reaction from here onwards.
Trade closed: target reached
⋅
16:45 Hrs 14th Feb2017
Closing Price@362.65
Shall continue in the latest post of Jet Airways.
Comments
Prince_Kanodia
⋅
Hi Abhishek,
Its always fabulous to read ur analysis detailed and very genuine. I just wanted to discuss on jet airways price action today. As per my view jet is in 3 way correction n is at lows of 362, do u think 375 can act as a resistance n form a flag or can it head to 400 levels again ? I m still bearish in Jet. Plz do suggest ur opinions ?
@AbhishekHSinghCMT, yes. After today's move what will be ur vstrategy?
WaveTalks
⋅
@Prince_Kanodia, Shall update in the latest post of Jet Airways in evening session once I go through the price structure.Regards
Prince_Kanodia
⋅
@AbhishekHSinghCMT, Ok. Thank you. Will be waiting.. Regards
vinayr012
⋅
First of all Thank you so much for all your ideas, I have been following you since few weeks,Excellent analysis. As per your last
update if we entered in the range of 376 - 378 or above you have mentioned to trail stop loss to cost price. But today it came back from 385 levels(which you had mentioned) back to 374, Does that mean we should have losed the position by now?
WaveTalks
⋅
@vinayr012, I mentioned above same reply in recent comment holding till 369 is intact only if you can take risk because Jet is in downtrend & trading counter moves is always a challenge.
vinayr012
⋅
@AbhishekHSinghCMT, Thanks for the response. Will keep a watch on that level.
Its always fabulous to read ur analysis detailed and very genuine. I just wanted to discuss on jet airways price action today. As per my view jet is in 3 way correction n is at lows of 362, do u think 375 can act as a resistance n form a flag or can it head to 400 levels again ? I m still bearish in Jet. Plz do suggest ur opinions ?