We turned bearish on this stock when prices failed to sustain its high near 1400 levels and captured a fall till 1050 levels. After that when prices witnessed a sharp rise from its low we turned bullish. Prices took out its resistance of 1190 and captured a move towards 1240 levels.
We have been able the capture the swings in various stocks with the help of Elliott Wave and other basic techniques for short term trade set up. Below is the chart showing detail analysis on hourly chart of Kotak Bank.
Kotak Bank 60 mins chart: Anticipated as on 27th November, 2018
Kotak Bank 60 mins chart: Happened as on 03rd December, 2018
The following is the gist of research published in “The Financial Waves Short Term Update” on 27th of November, 2018.
Elliott Wave analysis:
As shown on the daily chart, the stock has been forming series of DOJI candles since thepast few sessions which indicate the prevailing indecisiveness amongst the traders and this may continue unless we see a break of the range.
As shown on 60 mins chart, prices have been dragging along the channel support and have failed to show any significant move. If we see prices breaking above 1190 that would indicate that wave (b) has completed near 1122 and wave (c) has started on the upside. Also, the RSI indicator has been moving within 70-35 levels since the beginning of the month and hence the current oversold zone would be below 35.
In short, a break above 1190 is required for the prices to drive higher towards 1240 on the other hand a break below 1153 is essential for lower levels to be attained. BANG ON!!
Happened: Kotak bank moved precisely in line with our expectation. Prices broke its range taking out its important resistance placed near 1190 level to move higher towards 1243.
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