Elliott wave applied on SBI provided very precise forecasting ability. SBI had been in a strong uptrend over many weeks now.
Is there a way to enter into the up move in middle of the trend and still manage to capture 11%? Yes
Now see the below chart which was published on 15th November morning before markets opened in the daily equity research report – The Financial Waves short term update
SBI Hourly chart: (anticipated on 15th November 2019)
SBI hourly chart: Happened
Elliott Wave analysis: Following was published on 15th November 2019
After a good rally, a phase of consolidation was expected in SBI which is precisely the dip that we are currently witnessing in the stock. In the previous trading session the stock closed on a flat note at 306.
On the daily chart we can see that SBIN is moving in the form of wave F on the upside .As we can see the price had moved up too fast too soon and away from the 30 EMA, hence the possibility of mean reversion cannot be ruled out. But it is better to trade on the side of the higher degree trend and best not to trading the corrections.
On the hourly chart we have shown the internal counts of wave E where we can see that wave (a) was completed near the high of 324 and currently wave (b) is ongoing. This wave (b) has not yet retraced 38.2% of wave (a) so it could either continue moving lower or consolidate in time. A break above 324 on closing basis can take the stock higher towards 338-340 levels as far as 295 levels remains intact on the downside.
In short, SBI is in a corrective mode for now .If the stock breaks and closes above 325 we can expect a move higher towards 338-340 levels in the form of wave (c) as far as 295 levels remains intact on the downside.
Happened: SBI moved precisely as expected and touched the high of 342 levels as of now. This simply shows power of Elliott wave along with Fibonacci projections.
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