LIC Housing Finance was close to a support zone and almost all oscillators were in deep oversold levels. As per classical technical analysis this was a sign of reversal but as per Neo wave we knew that it was a complex correction in progress and after a minor pullback the trend would continue lower.
A complex correction is formed out of standard ones (Zigzags, flats, triangles, Diametric) that are connected by a maximum of two x-waves.
The below chart is picked up from daily equity research report – The Financial Waves short term update on 23rd August 2019
LIC Housing Finance 60 mins chart: (Anticipated as on 23rd August 2019)
LIC Housing Finance 60 mins chart: (happened as on 5th September 2019)
Elliott Wave analysis: Following was mentioned on 23rd August 2019
Anticipated on 23rd August – As shown on daily chart, the recent fall is very steep and it is best to use any pullback as shorting opportunity in this stock. Only a panic low and sudden reversal above 460 will suggest a false break else use rallies to short.
As shown on hourly chart, in the previous trading session price broke below the downward sloping channel with a huge gap. Wave a is in progress. Price may show pullback as RSI is deep oversold but avoid creating longs as pullback can be temporary.
In short, LIC Housing Finance looks negative. Pull back towards 435 – 440 can be used as shorting opportunity with 460 as important resistance for a move towards 400 on downside. BANG ON!
Happened as on 5th September 2019- Prices moved precisely as expected and showed a pullback in the form of wave b which was towards 438 levels from where we saw sharp reversal on downside in the form of wave c below 400 levels.
This simply shows power of Elliott wave and how accurately one can trade using these methods.
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