Auropharma – 831 to 750 - A crack!Auropharma – 831 to 750 What a crack!
Risky Traders – get ready to lose 4-5 points and gain 50+ points – closing statement in the video idea – “Once bitten twice shy” as of 4th Dec 2018.
If the stock moves in line as you expected giving us an exact entry as well to be precise 825-827 zone when it closed overnight at 821 levels has to be dream come true scenario for an analyst.
Flashback
Overnight (As of 4 - 6th Dec 2018) , Auro was moving within rising wedge –a common term used by traditional analyst until I came to know about wave analysis where the same structure was termed as “ending diagonal” – a overlapping structure which indicated that the upward structure could be ending soon.
Rising Wedge
When a financial instrument (which could be stocks, forex, commodities, bonds etc,) price has been rising over time, trendlines drawn above and below the price chart pattern can converge to show a potential reversal point at a peak. This reversal point can indicate a bearish price point signal in which the security’s price is subsequently expected to reverse lower.
In our case the peak was 831 High and we got excellent selling opportunity close to the peak at 825-826 zone – High was 826.70/826.80- rest is the history
Target achieved – 794 as suggested over the video with small pause and breaks at 815 -810 zone.
This pattern is used by traditional analyst and wave analyst
Books – Technical Analysis -Edwards and Magee ,Wave Analysis - Frost and Prechter
Polarity Reversal = History Repeats
What happens is that history essentially repeats itself, but the role of price at that level changes from resistance to support and vice versa.
Polarity Reversal concept explained in my favorite book which was the first one I referred for the journey of technical analysis written by – Edwards and Magee.
Important Polarity Reversal zones in last week
790-792
777-775
Candlestick Analysis
Evening Star – 3 candlestick pattern as suggested in the book – Candlestick Analysis by Steve Nison
Steve Nison – Father of Candlestick Analysis.
Book – Candlestick Analysis by Steve Nison
Harmonic Analysis
Bearish Crab - Excellent Harmonic Structure occurring at 831 was an amazing clue
Book - Harmonic Analysis by Scott Carney
Trendline / Channels
Book – Technical Analysis by Edwards and Magee is the reference book.
Financial Astrology
Term used by financial astrologer- “Retrograde” was also updated in previous video idea of the Nifty Index – “Mercury, Markets and Mayhem below 10800” – Mercury retrograde runs till 6th Dec 2018 – if you haven’t gone crazy – don’t worry market will make you crazy.
Note-
As updated/suggested on 29th / 30th Nov 2018 in last Nifty Video Idea comment section –we expected to be cautious from 10950-11000 zone which was danger zone
What type of analyst are you? You just had to pick and execute –rest you were bound to enjoy the markets.
Finally, It was kaka’s blessing directly from Bollywood (Kaka – Late Rajesh Khanna) – stands out to be real tribute to this Bollywood actor in the creative way (audio clip) as updated in last video idea.
Thanks.
