Tatamotors had been a top gainer in today’s session despite auto had been in series of negative news. Also it becomes important to analyze auto sector as if the weakest sector starts reversing on upside it will provide further clues that there is buying emerging. We were able to capture such huge rise on Tata Motors with the help of Elliott wave combined with channels and Fibonacci ratios.
Channels are the most basic and effective technique which helps in finding important support and resistance zones. As per our analysis majority of the time channels work extremely well and helps in finding the exact reversal areas.
Fibonacci ratios when applied along with Elliott wave give a very powerful method of forecasting. We have applied this method on Tata motors and it worked out brilliantly well!
The below chart is picked up from daily equity research report – “The Financial Waves short term update”
Tata Motors 120 Min chart: (Anticipated as on 29th August 2019 morning)
Tata Motors 120 min chart: (Happened as on 11 September 2019)
Elliott Wave analysis: Following was mentioned on 29th August 2019
On the daily chart, we are moving in the form of wave c of double corrective pattern. This wave c is forming ending diagonal impulsive pattern. The internal structure of the same can be seen on the hourly time frame chart above.
As of now wave (iii) of c might have completed near the lows of 106 which was also 76.4% projection to wave (i). Break above 122 will further confirm that wave (iv) retracement has started. This will result into price movement towards 139 which is upper trendline of channel and also 50% retracement of wave (iii)… BANG ON!
Happened as on 11th September 2019- Prices moved precisely as expected and rose up 7% in a single day moving above 131 levels so far.
The above analysis clearly shows how well a simple channeling technique and Fibonacci retracements works in sync with Elliott wave. Get access to the intraday calls, daily equity research report & capture such amazing trading opportunity over short term “The Financial Waves short term update”– Get access here
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