This stock can be shorted. The reason are outlined below.
Currently stock is trading in a range of 481 - 437 so a breakout either way can be taken in a manner of speaking but
481 is an important resistance zone clearly and is also 38.2% of wave 1 so a potential wave 2 starting point.
We can short EURJPY for the following reasons.
The Primary Wave 2 is completed thus we are potentially seeing wave 3. Wave 3 cannot go higher than wave 2.
The price is also approaching intermediate wave 2 where it should terminate and start wave 3. Again wave 2 cannot go over the area of starting of wave 1.
It is a hat-rick because minor wave 2 cannot cross...
We can buy Hindalco.
As you can see the market is trading above a resistance line so Sl can be just a bit below it.
This is starting of wave 3 if it hold above the 200 level EOD basis.
Let me know what your thoughts are on this!
Reason 1: We can short ONGC around 190 zone since we have a breakout this could mean that wave 3 has ended and wave 4 is about to start.
Reason 2: Wave 4 is exactly 38.2% Fib level away wave 3.
Please post your comments and let me know what you think
Wave 4 will not terminate in the area of wave 1. So come Monday worst case scenario would be markets would reverse and test area of 627-630 zone where wave 4 would continue on its downtrend again. SL here can be on EOD wave 1.
I have here used the ABC pattern with subwaves 3,3,5. In the C wave as you can see is still forming. here are a list of reasons why i believe that this stock is about to correct.
wave C is still still under completion with 2 subwaves remaining.
Double top formation.
Formation of indecision candle on both the tops.
Channel formation where even if the there...