Mentorship

ITC: Is it Time to Buy FMCG Major?

itc stocks trading Jan 04, 2021

ITC stock had been stuck in corrective phase over past many months now. FMCG sector has not given any strong returns so far.

Look at the below chart published in the monthly research report on 14th December 2020. Channels have continued to work extremely well.

ITC Daily chart:

Published in Monthly research on 14th December 2020 –

Daily chart- We have shown the internals of wave (iv) in the daily chart. Prices are probably forming a neutral triangle correction if not a diametric. Break above multiple resistances at 210 levels indicates that probably wave (c) is over and currently prices are in wave (d).

Channelling technique- Prices are approaching the upper line of the red channel drawn. Also, the shorter duration channel (blue) is sloping upwards indicating that that the short term trend continues to be up. Price can be seen taking resistance near the upper blue channel line. Only a break below the lower line of the blue channel followed by break of pivot low of 160 levels would indicate that wave d is over and that will be the first sign of short term trend reversal…

Pattern analysis – As can be seen on the daily chart, Prices have formed a double bottom formation and a break above 210 level completed the pattern. Also, the rise from the lows of 135 has been accompanied with rising volumes. One can expect the short term trend of the stock to be positive as long as ……….. is protected on downside.

In a nutshell, the short term trend of ITC is positive. Prices are expected to move towards the levels of …………. as long as ……… followed by ……….. is protected on downside. However from long term perspective, the stock is still in a corrective phase and long term investors can wait for the dip towards the lower blue channel line for an ideal entry.

To get the exact levels for entry and exit refer the daily research report – “The Financial Waves Short Term Update” along with monthly research. Subscribe annually and get the monthly report free. Offer valid for limited time. Subscribe here and select 12 months for equity research and you will be set for monthly updates as well.

Learn the power of forecasting using Elliott wave and Hurst’s Time cycles along with Ichimoku Cloud in the best of Technical Analysis. Early Bird Ends today. Register now over here