Thursday, January 24, 2013

Stock Ideas

  1. HDIL seems to have completed a 3 wave counter trend move, as is obvious from the sharp fall, once the final rising wedge (ending diagonal) was complete. Any 3 wave bounce should be sold into, I guess.
  2. The breakdown has reached its target (target for the ending diagonal wave (2) low) in practically 2 days, that is sign that the prevailing down trend has asserted itself, and how.
  1. M&M on the other hand has been trending beautifully. But as with everything else, all good things must come to an end.
  2. Whether M&M has completed its 5 wave advance at 975 odd levels, only time will tell, but it could well be the time to be cautious. 
  3. The best strategy would be to watch the price moves closely, if we rally in 3 waves and fall back to make new lows, the trend could be considered bearish for some time to come. The whole advance from 620 odd levels, stands to be corrected.
  4. There is also a possibility that the correction might be a shallow one (look for the wave (4) of one lower degree to offer support), and the last of the advance the final wave [5] might still be pending.
Note: This discussion was in response to a direct query from a Blog Reader. Thought everyone might find something useful out of it. Just a thought!

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