Tatamotors made a high of 324.3 from the weekLEMA of 277 on the news of it's Good sales only to complete a B and now the C down has started. Currently, again it a has made a low of 278 which is a weekly support at Week LEMA. 200 DMA is at 291.8 levles also a Cluster of resitances at 289-291 levels by way of 13,50,55,100 and 200 DMA.
A consolidation or a trading range between 278 - 291 in on and break down would be severe.
Week Chart:
A Symetrical triangle is formed by the
Long Term Trendline and the
resisting Trendline. Breakdown of 278 - weekLema and Long term Trendline would initially bring down to 265 levels - Contracting triangle. Break down of Contracting Triangle would drag down near 250 levels.
This view is supported by the Wolfe Wave formed in Day Charts.
WOLFE WAVE CHART:
If the Point 4 is considered at 4.a i.e 271.8,
then the point 6 would form near 270-265 levels.
If Point 4 at 263 is considered then point 6 would be formed
well below 250.
Day Chart:
A good trading range between 278 - 291 and an EOD close above 200 DMA would warrant caution in Long positions.
9 comments:
Hi Parimal,
This is the 3rd wave going on. Divergences are likely to appear in thirdwave - but always it should be corelated with the TA parameters. For instance initially an EOD close above Day LEMA is a must for a pause in down move. So once that is attained, then we would look for support of Divergences to go for an aggressive Contra Trade. Till then following trend would be the best way to trade.
Hi Satheesh
thanks a lot for the kind guidance, yes i am trying to follow the trend and 3rd wave, as Sir has mentioned, trend may assert in some hours or a day, rgds
Hi Satheesh, you are a quite kind person, thanks. seems divergences are in effect, may be also wedge, it also can be deceptive since fundamentally nothing has changed! i shall have an eye on 5DEMA EOD now! regards
Moreover: OI signals have been bullish since morning 9.45.
Thank u mam, ur TM charts are so clear otherwise it looks all zig zag.
For 2nd wolfe, am I correct in saying that pt5 is yet to form, which means it could rise again beyond 300.
Hi Satheesh,
help me one more thing kindly, what instrument to trade in the settlement week, Put-Call of both near and also next month get quickly decayed, and for me future is expensive at the moment. regards
Parimal I rarely trade options. So I do not have much idea.
Hi Satheeshan, GM, Thanks a lot, but time-decay speeds up in the expiry week more than the other weeks which might equally effect Futures as well, am i right, rgds
Mam,
Request a review on TM. Would u consider Pt5 done or will it be at 332?
Thanks
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