DLF is one of the favorite stocks for traders as it tends to move in a trend. I am thrilled to see how amazingly a stock can follow certain Fibonacci projections and retracements.
Below is the research picked up from the daily research report “The Financial waves short term update” that shows detailed Elliott wave counts along with importance of 61.8% Fibonacci retracement
DLF Daily Chart: (shown on 6th April morning research report)
Wave analysis: (following is an excerpt from our daily research report published on 6th April before markets opened)
In earlier update on DLF we mentioned that, “Break below 211 – 210 will resume negative trend for DLF towards 205 or lower levels.” Bang On! DLF has moved as expected and made a low of 198 levels. It seems majority of the stocks behaved the way we expected and achieved the downside target post which we are seeing positive reversal.
As shown in daily chart, prices are moving within the downward slopping red channel. We have added Fibonacci retracement which shows that the up move which was witnessed in the form of wave Z is retraced by 61.8%.
Close observation of the chart shows power of 61.8% on DLF. We can clearly see that after each up swing prices retraced back exact 61.8% level and bounced back from there. Even current fall was precisely on 61.8% retracement from where we are seeing positive reversal. Going by the history we are optimistic that this support will hold even this time and we should start seeing upside swing back towards ……..
As shown in hourly chart, (detailed Elliott wave pattern is shown in actual research report)
In short, DLF is short term positive and move towards …… can be witnessed with important support placed at …….. levels. Further break above ……….. can take this stock towards ……… levels which is post pattern implication of Ending diagonal pattern.
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