NBFC stocks have continued to move in strong trend and have failed to show any type of positive attempt. Below is chart of India Bulls Housing finance that shows it has been moving in downward sloping channel which has been intact for many months.
The below is picked up from daily equity research report – The Financial Waves short term update
India Bulls Housing Finance daily chart:
IBULL Housing Finance is in downtrend since the past many months. Recently price hits its new 52 week low near 420 levels on 29th August 2019. In the previous session the stock closed on the flat note.
As shown on the daily chart, prices are moving in well channelized manner. As per wave perspective wave iii is ongoing in the form of Ending Diagonal pattern which can be formed in wave 5, internal counts as on shown in hourly charts. Further a break below 422 levels on closing basis would allow prices to move towards lower trendline of the channel.
On the hourly chart, (shown in actual research report)
We can clearly see that prices are failing to show any strong fall but in overlapping fashion. This is typical behavior of Ending diagonal pattern.
Ending Diagonal – is a 5 legged impulse pattern with wave iv overlap with wave i. Also unlike normal impulse each leg of this pattern is corrective. It normally looks like a wedge shape with reducing momentum. However, one should trade in direction of the trend unless there is faster retracement above the ii-iv trendline which provides the 1st stage of confirmation.
In short, trend for IBULL Housing Finance seems to be negative. A break below 422 might push prices lower towards …… followed by ……….
(a few levels are removed from above research purposely, use it only for learning. The actual research report shows detailed Elliott wave pattern and levels).
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