Power Finance Corporation has been an outperformer and is trading near its 52 weeks high level. In the previous session also the stock managed to show a gain of 4.5%. We have been bullish on this stock and captured the upmove form of the level of 118.60.We used Elliott wave patterns along with Fibonacci series to identify this potential trade setup.
Fibonacci retracements and projections are very powerful tools to identify price targets when used in conjunction with Elliott wave patterns.
Below is the chart showing detailed analysis published in our research report –“The Financial Waves short term Update.”Wherein we captured a move of 4.70% on intraday basis.
Power Finance 60 mins chart:(Anticipated as on 18th March 2019 )
Power Finance 60 mins chart:(Happened as on 19th March 2019 )
(The following is the gist of research published in our equity report published on 18th March 2019)
Power Finance Corporation post making 52 weeks high near 118.60 levels witnessed correction on the downside. Prices have however managed to show some recovery on the upside indicating positivity.
As seen on daily basis, prices are forming Complex Correction pattern within wave x. The second set of correction is ongoing currently. Prices have retraced back around 61.8% of the prior down leg which was in the form of wave c. A move towards … levels can be expected over the medium term which is 76.4% retracement of wave c.
As shown on the hourly chart, wave (b) of Flat correction pattern is completed on the upside and wave (c) is ongoing currently. A break above 118.60 can take prices higher towards ….levels which is the channel resistance and also the 100% extension of wave (a).
In short, trend for PFC looks positive and a break above 118.60 can be used as a buying opportunity for a move towards …..levels with short term support placed near 110 levels.
Happened:Price moved in similar manner as we expected. In today’s trading session price made a high of 123.3gaining 4.5% from the entry level of 118.60 within a day !
The above analysis clearly shows how well this technique works. Get access to our “The Financial Waves short term update” is daily equity research report covering Nifty and 3 stocks providing detailed analysis using Elliott wave and other technical analysis methods. Subscribe here
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