Maruti has been moving within the minor range of 7230-6480 since a month and at such times it gets really difficult to take appropriate trades. There are certain indicators which work really well during such range bound moves; one of them is Bollinger bands. In similar lines we were able to catch the stock’s moves in either direction only with the help of Bollinger bands.
Below is the chart showing detailed analysis published in our research report –“The Financial Waves STU Update”
Maruti Daily Chart: (Anticipated as on 03rd April 2019)
Maruti Daily chart: (Happened so far as on 09th April 2019)
(Following research is taken from daily equity report published on 03rd April 2019)
Elliott wave Analysis:
Anticipated as on 03rd April 2019: Maruti has been moving in a minor range of 7230-6480 since the month of January. Recently it bounced from the lower range and is making a move towards the upper range.
As shown on daily chart, post making a low near 6480 levels prices have been moving higher and protecting its prior bar’s low since the past five sessions. The move indicates that the short term trend looks positive. We are showing Bollinger bands which have been working really well and prices bounced exactly from the lower band and are now moving towards the upper band which is near 7300.
As shown on hourly chart, prices are moving in the form of Flat pattern and post completing wave b near the low of 6480 levels wave c looks ongoing on the upside.
In short, trend for Maruti looks positive. Break above 7000 can take the prices towards 7200 followed by 7300as long as 6700 stay intact on the downside.
Happened as on 09th April 2019: Despite being caught up in a minor range prices moved exactly as expected within the Bollinger bands and achieved the conservative target of 7200 and made a high near 7235 on 09th April and is now making a move towards 7300 levels.
The above analysis clearly shows that just using this Bollinger bands technique coupled with channels one can guess probably key reversal areas and inform when to enter to capture the trend and when to exit.
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We have also been applying Elliott wave combined with various indicators and have been accurate in capturing strong up moves in momentum stocks like Bajaj Finserv, Pidilite, BEML, etc. All of those showed strong gains in short period of time. To know more about our next pick and to ride the trend in momentum stocks you can get access to our report “The Financial Waves Momentum Update”- Get access here