JSW Steel is witnessing correction since mid-July and touched its 52 week low near 211 levels in today’s session. We were able to capture this sharp down fall with the help of wave counts that suggested the Ending Diagonal pattern formation.
The ending diagonal is a special type of wave that occurs in Wave 5 of an impulse or the last wave of correction pattern – Wave C of correction which moves in an overlapping manner.
Below is the chart with detailed analysis published in our daily Equity report under the name “The Financial waves STU”:
JswSteel 60 mins chart: (Anticipated as on 01st August 2019)
JswSteel 60 mins chart: (Happened as on 07th August, 2019)
(Below is the extract of the research published in the report)
Anticipated as on 01st August 2019: On the hourly chart, we can see that wave iii is probably complete and the up move is in form of wave iv. Move above 242 might result into a short term recovery towards 250 but it is best to be placed on short side once the pullback is complete. Also it seems that wave (C) is forming an Ending diagonal pattern…
In short, JSW Steel is showing short term pullback with upside resistance near 250 levels. Move below 230 will resume the down move towards 220 or lower levels. For up move to emerge we have to see some base formation and it is best to use pullback as shorting opportunity as long as 260 remains intact. BANG ON!
Happened as on 07th August 2019: Prices moved as expected and hit its 52 week low near 211 levels.
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