Indigo witnessed a strong downmove in today’s session and broke its important channel support indicating beginning of a bigger downmove. We mentioned about the same stock in our daily research report and were able to catch the move just with the help of channels and Elliott wave analysis.
Channels are one of the most basic technical analysis which works extremely well. Channels are two parallel lines drawn by connecting highs and lows of the stocks. They are important as it provides with a clear trend of the particular asset and probable key resistance and support areas.
Below is the chart that consists of Elliott wave counts and channels with detailed analysis as presented in our daily research report published under the name- “The Financial Waves STU”
Indigo hourly chart: (Anticipated as on 1st July,2019)
Indigo hourly chart: (Happened)
Anticipated as on 1st July,2019- On the hourly chart, price is currently quoting near the lower channel support zone. We have shown the internal counts of ongoing wave v (blue) wherein wave (ii) (red) is ongoing. Move above 1625 will indicate resumption of the up move towards 1700 or higher levels and on downside 1530 is an important support. While a break below 1530 levels will imply wave (v) is probably over at the highs and bigger degree downtrend is starting.
In short trend for Indigo seems to be at crucial juncture. A break below 1530 will imply bigger degree downtrend. Move above 1625 will resume the positive trend which can move up to 1700.
Happened- Just as mentioned prices broke below the important support of 1530 placed near the channel and witnessed strong downmove indicating a beginning of bigger downmove on the downside.
The above analysis simply shows that how well simple techniques work which could help in finding important support and resistance levels in order to take trades accordingly in that particular direction.
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