Escorts has been trading in the red zone since the past few sessions and despite witnessing a sharp fall when everyone look for some consolidation, we were spot on in capturing the further immediate breakdown. We were able to catch the move only with the help of Elliott wave and retracement levels.
Below is the chart with detailed analysis published in our report named- “The Financial Waves STU”
Escorts 60 mins chart: (Anticipated as on 07th May, 2019)
Escorts 60 mins chart: (Happened as on 09th May, 2019)
(Below is the extract taken from our daily equity research report)
Anticipated as on 07th May,2019: The Nifty Auto index witnessed a sharp fall since mid-April and Escorts showed a very similar down trend in price in this period.
As shown on hourly chart, the 50 hour EMA has offered resistance multiple times through the fall of wave f. As the fall has been sharp and fast it is best to use pullback as shorting opportunity. Beak below the hourly channel support and low of 650 will resume the downtrend.
In short, Escorts is at a crucial level. If prices manage to protect 650 over next two days then range bound action can be witnessed between 720 and 650 levels. Whereas, breach below 650 will be bearish for a trend towards 600 on downside.
Happened as on 09th May, 2019- Prices moved just in sync with our expectations and post breaking the level of 650 witnessed steep fall and formed a low near 607 levels which also comes to near 100% retracement of the prior leg.
The above analysis clearly shows how well Elliott wave works when combined with basic techniques like Fibonacci retracement, channels, EMA, etc. Get access to the daily equity research report published under the name “The Financial Waves short term update” and know how to capture good trading opportunity over short term on daily basis- Get access here
You can also Subscribe to our monthly report published under the name of “The Financial Waves Monthly Update”-and get short to medium term insights about Nifty, Commodities, Currency, Stocks and mutual funds. Get access here