We have been bullish on this stock when prices reversed post making a low near 520 levels and started making higher high higher low formation. We have been using Elliot wave theory coupled with Fibonacci extension to project where the possible high will be. This stock managed to make an intraday high near 980.65 levels.
Below is the chart showing detailed analysis published in our research report -“The Financial Waves Momentum Update.”
BEML Hourly chart🙁 Anticipated as on 13th March 2019)
BEML Hourly chart:( Happened as on 13th March 2019)
(Following research is taken from Momentum report published on 13th of March 2019)
Momentum stock recommendation: BEML
Buy Price – Buy above931
Time Horizon –Not Applicable
Investment – 5% of capital
Target price –………………..
*Trail stop to cost after booking partial profits to ensure capital protection*
BEML had a serious correction from 1950 to 550 levels. However, after forming an important low near 550 we are seeing a strong positive retracement and prices have managed to move back above the 23.6% of the fall. This indicates that medium term low might be in place and we can see retracement towards 38.2% level or higher.
As shown on hourly chart, the rise post completion of wave b looks to be impulsive in nature and looks to be in the form of wave c of Zig-Zag Correction pattern. Prices are expected to move towards 969 which it’s the partial profit level which comes near 61.8% projection of wave a followed by ….. which is the target level and comes to 76.4% projection of wave.
One can keep a stop near 860 which is the low of wave (iv). Any move below this level will indicate that wave (iv) is not yet over and is still ongoing.
In a nutshell, BEML might provide good trading opportunity over short term and we can expect a move towards 969 (partial profit levels) followed by ….. (target level). Use strict stop of 860 in case the broader market starts moving lower. Also it is advised to enter the stock above 931 which is the buy level above immediate resistance.
Happened :Price moved exactly as expected and showed a solid gain of 4.5% above the price of trade initiation within a day ! the stock made a high of 980.65 in the day and achieved out target of partial profit level at 969.
The above research clearly shows how one can capitalize the study of Elliott wave and ride the ongoing trend. To know more about our next pick and to ride the trend in outperforming stocks you can get access to our report named “The Financial Waves Momentum Update”- Get access now
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