Tata Power: Bang on using Elliott wave and Bollinger Bands

bollinger bands elliott wave tat power tata May 13, 2024

Elliott wave and Neo wave helped in catching a top in Tata Power in advance when no one expected it.

After bad quarterly results, stock crashed by more than 10% in just 4 sessions but if you check the trend was already matured and was expected to reverse on downside by applying Technical analysis methods along with Elliott wave in our Equity research report.

Tata Power Daily Chart Anticipated as on 8th May 2024Wave analysis as on 8th May 2024

In the previous session, Tata Power formed a big bearish candle and lost more than 2%. Stock gave a close below previous day’s low which keeps the tone on the negative side as long as we do not see a close above previous day’s high.

On the above chart, we can see that after reversing from the upper bands of the Bollinger Bands®. Prices have completed its journey towards the mid bands. Now a close below it is must for further selling to resume. Stock is currently trading at the channel support a close below it can accelerate further selling pressure. As per wave perspective, wave (v) looks to be completed on the upside. But for confirmation follow up selling is must. So, all the signs are suggesting weakness in this stock

In short, Tata Power looks bearish. A break below 430 can drag the price lower towards 415 as long as 445 holds on the upside. 

Tata Power Happened Daily Chart as on 13th May 2024Happened: We can see in the first chart; the up move was matured and we anticipated a possibility of a correction on downside as the stock was probably completing wave (v) higher. Elliott wave is GPS of the market. It helps to understand the maturity of trend and if it’s time to sell. The second chart shows that after breaching below 430 levels, stock achieved out target of 415 and moved way lower by making a low of 396.5 which is more than 10% move from our mentioned levels within just 4 trading sessions!

In a nutshell, the above research clearly shows how by understanding Elliott wave and Neo wave one can forecast stocks that seem to be driven by news or events but the GPS of the stock gave a warning signal much earlier.

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