In start of 2018 we predicted that this year Pharma and IT sector will be the out performer and similar is being witnessed. Dr. Reddy has shown an exceptional recovery from its low. We have been using Time cycle on various stocks as well as indices to gauge the timings of that particular stock.
Below is the daily chart of Dr. Reddy showing how we were able to predict when the next low will be!
Dr. Reddy daily chart: (Anticipated as on 22nd November, 2018)
Dr. Reddy post making a low near 2390 witnessed a strong gap up opening and showed a whooping gain of 9% in the session of 21st November on account of US FDA approval for its medicine, in the previous trading session the stock closed positive by 6% and was amongst the top gainers.
As shown on daily chart, Wave i or a is completed on the upside near 2675 levels and currently wave ii or b is ongoing. A break above 2675 will provide an indication that wave ii is completed on the downside and wave iii has started on the upside. We are showing two moving averages on the chart which is 20 periods and 40 period’s average. The short term average has crossed above the long term average and is sustaining above it which keeps the overall bias positive as long short term average sustains above the long term average.
112 Days’ Time Cycle: We can see that 112 day’s cycle is working well and prices witnessed an up move each time post a low is made on cycle day. Recently also we have witnessed the same and an up move was witnessed exactly post a low was made near the channel support.
In short for Dr. Reddy, break above ……………for more get access to our equity report to know what will be the next move- “The Financial Waves Short Term Update”
The above analysis shows how well this technique works. We also provide intraday basis call on derivative as well as equity cash segment using these techniques. To know more, Click here.