Neo wave is advanced of Elliott wave which defines new patterns like Diametric . Most of the stocks and indices are exhibiting this pattern and recent move seen in ICICI Bank is also a classic example of this. So, how by knowing a pattern help in trading?
Look at the below chart of ICICI Bank published in the equity research report on 3rd November morning before markets opened – The Financial Waves short term update
ICICI Bank 60 mins chart:
Wave analysis: Following was mentioned on 3rd November when the stock was near 511 levels.
ICICI Bank has been steadily rallying making new lifetime highs. The rise has been not impulsive as we can see overlap between the retracing waves.
On the daily time frame, (mentioned in the actual research report)
On the shorter time frame price can be seen rallying within the rising channel and is currently trading near the channel support. The entire rise is in form of a Diametric pattern and prices are currently in wave g. This is the reason why there is loss of momentum but as long as the support levels are intact it is better to stay positive with caution.
In short, trend for ICICI bank looks sideways to positive. A break above 520 can continue the rally towards ……. as far as ……… remains intact on the downside…..
The above clearly shows that since we knew the pattern forming is Diametric we maintained bullish stand and also the channel support along with Moving averages worked amazingly well. ICICI Bank is currently up by 3.78% today and touched the high of 531 levels.
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