Ichimoku cloud is a very powerful technical analysis tool that can be used in combination with Elliott wave for deriving very high conviction trade setup.
In the morning research report “The Financial Waves short term update” we published detailed Elliott wave counts along with application of Ichimoku Cloud on Shriram Transport Finance.
Shriram Transport Finance Daily chart:
Shriram Transport Finance 60 mins chart:
The following was published today morning in daily equity report “The Financial Waves short term update” before markets opened
In the previous update we mentioned ‘In the short term trend for SRT looks negative and break below 1020 can result into price moving lower up to 980 levels.’ Bang on! Price moved precisely as we predicted and within the same day the stock made a low of 976.30.
On the Daily chart, wave g is currently ongoing. Price has fallen lower post testing the cloud. The conversion line (blue line) and the base line (red line) of the Ichimoku cloud are also pointing downwards which confirms the bearishness in trend.
As shown on hourly chart, currently we are moving in the form of wave c. Prices are just breaking below the important multiple touch point and a sustained move below 970 will take prices towards 940 or lower. This scenario remains valid as long as we do not see faster retracement above the last falling segment…
In the short term trend for SRT looks negative. Pullbacks can be used as a selling opportunity for price movement lower up to 940 levels. This view remains valid as far as 1050 remains intact on the upside. BANG ON!
Happened: SRT moved precisely as expected and touched intraday low of 931 as of now.
Nifty and stocks are moving precisely on intraday basis. We have been able to capture the fall and generated calls on the same. You can get access to intraday calls and receive the above research reports along with it with detailed Elliott wave pattern and various technical analysis applied. Get access here
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