Current wave counts
Primary-wave 2 (orange)
Intermediate-wave A (Blue)
Minot-wave B (Red)
Minute-wave C (Yellow)
Applied Neo wave Impulse Rules:
1)Counting started from faster retraced low
2)wave 2 should not retrace wave 1 by more then 61.8%
3)wave 2 should be equal or longer then wave 1 in terms of time
4)0-2 TL should be clean and price action of 1 should not touch 0-2 TL
5)wave 3 should not be shortest
6)wave 4 should not enter wave 2 zone
7)2-4 channel should not have more then 4 touch point,here on 5th instance channel was broken
8)wave 4 should be longer then wave 3 in terms of time
9)Atleast 1 Alternation between intermediate wave 2 and 4 should be there,here alternation is observed in terms of retracement,pattern complexity,time and price
10)Every new motive wave had 2 stage confirmation.
Analysis
Looks like Tata steel is certainly not in buying zone,as it has completed intermediate impulse cycle and it has broken minute 2-4 TL,minor 2-4 TL(not shown in the charts),minute 4 low's in lesser time then minute 5 took to form and 21 day simple moving average.
A decisive close below 1400 can trigger fresh selling till 1240-1250 where previous price action zone comes along with 23.6% retracement of entire intermediate cycle from 365-1535.Hence short selling can be done if price goes below 1410 with a stop loss of 1460 on the upside and target of 1250 and 1140.
Continuing to this logic meanwhile during this fall if price's comes to 1250 level then it will be breaking intermediate 2-4 TL in lesser time then intermediate 5 took to form hence it can be assumed that intermediate top has been formed and going ahead price can even touch 1140 minor 4 lows and 709 intermediate 4 lows(I know it sounds ridiculous at this point) but i am mentioning this becoz it seems like we have completed intermediate impulse cycle.
As of now metals stocks are not participating in the on going rally so keep your exposure limited as in case of any major selling portfolio returns would be severely impacted if metals occupies major chunk of your portfolio.One can even start hedging by selling in the money call or of tata steel keeping mentioned spot price as stop-loss.Further Indicator's and Candle stick patterns can be used for efficient entry and exits.
PS: Interesting observation skip if you are already boared
1)As per the rules 5th(minute) extention of 5th(Minor) extention of 5th(Intermediate) wave cannot take corrective form unless 1st of highest degree 5th is sub-divided in 3.This is seen in this case.It was confusing me at first that Minor 5th is making terminal impulse by looking at the overall shape i got by connecting TL's but as Minor 1st of Intermediate 5 is not sub-divided in 3 this possiblity can be ruled out,also here Minute 4 has not entered Minute 2 pricezone which confirms termination of Minute,Minor and Intermediate 5th wave @ the shown place as per my view.
2)Both variation of Neo wave pattern Diametric pattern is seen,
Diamond Diametric-Intermediate wave 4
Bow-Tie Diametric-Minor wave 4
3)As mentioned by many Author's of wave theory and as noted historically wave 5 in commodities are longest.Here wave 5 is longest in terms of both price and time .
I have tried showing everything that i have charted hope-fully anyone reading this finds this post logical just like me
Primary-wave 2 (orange)
Intermediate-wave A (Blue)
Minot-wave B (Red)
Minute-wave C (Yellow)
Applied Neo wave Impulse Rules:
1)Counting started from faster retraced low
2)wave 2 should not retrace wave 1 by more then 61.8%
3)wave 2 should be equal or longer then wave 1 in terms of time
4)0-2 TL should be clean and price action of 1 should not touch 0-2 TL
5)wave 3 should not be shortest
6)wave 4 should not enter wave 2 zone
7)2-4 channel should not have more then 4 touch point,here on 5th instance channel was broken
8)wave 4 should be longer then wave 3 in terms of time
9)Atleast 1 Alternation between intermediate wave 2 and 4 should be there,here alternation is observed in terms of retracement,pattern complexity,time and price
10)Every new motive wave had 2 stage confirmation.
Analysis
Looks like Tata steel is certainly not in buying zone,as it has completed intermediate impulse cycle and it has broken minute 2-4 TL,minor 2-4 TL(not shown in the charts),minute 4 low's in lesser time then minute 5 took to form and 21 day simple moving average.
A decisive close below 1400 can trigger fresh selling till 1240-1250 where previous price action zone comes along with 23.6% retracement of entire intermediate cycle from 365-1535.Hence short selling can be done if price goes below 1410 with a stop loss of 1460 on the upside and target of 1250 and 1140.
Continuing to this logic meanwhile during this fall if price's comes to 1250 level then it will be breaking intermediate 2-4 TL in lesser time then intermediate 5 took to form hence it can be assumed that intermediate top has been formed and going ahead price can even touch 1140 minor 4 lows and 709 intermediate 4 lows(I know it sounds ridiculous at this point) but i am mentioning this becoz it seems like we have completed intermediate impulse cycle.
As of now metals stocks are not participating in the on going rally so keep your exposure limited as in case of any major selling portfolio returns would be severely impacted if metals occupies major chunk of your portfolio.One can even start hedging by selling in the money call or of tata steel keeping mentioned spot price as stop-loss.Further Indicator's and Candle stick patterns can be used for efficient entry and exits.
PS: Interesting observation skip if you are already boared
1)As per the rules 5th(minute) extention of 5th(Minor) extention of 5th(Intermediate) wave cannot take corrective form unless 1st of highest degree 5th is sub-divided in 3.This is seen in this case.It was confusing me at first that Minor 5th is making terminal impulse by looking at the overall shape i got by connecting TL's but as Minor 1st of Intermediate 5 is not sub-divided in 3 this possiblity can be ruled out,also here Minute 4 has not entered Minute 2 pricezone which confirms termination of Minute,Minor and Intermediate 5th wave @ the shown place as per my view.
2)Both variation of Neo wave pattern Diametric pattern is seen,
Diamond Diametric-Intermediate wave 4
Bow-Tie Diametric-Minor wave 4
3)As mentioned by many Author's of wave theory and as noted historically wave 5 in commodities are longest.Here wave 5 is longest in terms of both price and time .
I have tried showing everything that i have charted hope-fully anyone reading this finds this post logical just like me
Trade active:
Trade got activated in today's session when prices went below 1410.Price has taken support of IChimoku cloud on 6 occasion from where i have started labeling(havent shown over here),and today price made low 1360 and again took support of Ichimoku cloud meaning a small bounce can't be ruled out hence if in tomorrow's trading session we see a gap up opening then one shud close short trade and wait for another set-up for taking short trade.If prices continues to fall then one shud start trailing SL as per there risk appetite.On the down side we have a 2-4 Trend-line (Intermediate degree)@ 1320,hence price can stop at that level.
Comment:
today we have got another sell signal with a defined stop-loss level of 1420 on the upside.Currently we are done with wave W and wave X,going ahead we can see wave y correction.First target would be 1260 on the downside followed by shown levels on the downside
Comment:
Since i posted this idea stock has corrected from where it was mean while making double correction WXY.Right now we are in second correction wave Y sub wave C.
Important price area from where pries can reverse is coming at 1115-1130.Any bullish reversal candle in this zone followed by a follow through candle on the next day can bring short term bounce in this stock in the form of wave X in order to make this an triple correction WXYXZ.
Reason 1115-1135 to act as support zone
1)1:1 extention of wave W for wave Y from wave X top is coming @ 1125
2)50% retracement of Primary wave 5 in blue is coming @ 1116
3)we have channel support coming @ 1135
4)we have 200 day ema @ 1130
Since i posted this idea stock has corrected from where it was mean while making double correction WXY.Right now we are in second correction wave Y sub wave C.
Important price area from where pries can reverse is coming at 1115-1130.Any bullish reversal candle in this zone followed by a follow through candle on the next day can bring short term bounce in this stock in the form of wave X in order to make this an triple correction WXYXZ.
Reason 1115-1135 to act as support zone
1)1:1 extention of wave W for wave Y from wave X top is coming @ 1125
2)50% retracement of Primary wave 5 in blue is coming @ 1116
3)we have channel support coming @ 1135
4)we have 200 day ema @ 1130