Fibonacci series are used to derive important support and resistance levels. We have been using this technique on major indices alike Nifty and Bank Nifty along with stocks. It has been working amazingly well in deriving targets as well as pivot support levels.
When we combine this technique with Elliot wave theory and get similar outcome the accuracy of riding the right trend is more. This also provides good trade set up.
Below is the daily chart of UPL showing Fibonacci series along with Elliot wave published in our Equity report under the name of “The Financial Waves Short Term Update.”
UPL Daily Chart 🙁 Anticipated as on 02nd November, 2018)
UPL Daily Chart 🙁 Happened as on 16th November, 2018)
( Below is the gist of analysis taken from our equity report published on 5th November, 2018)
UPL has shown strong rally from past few days. Prices have made a biggest weekly bar of more than 100 points showing strong momentum is building on upside.
As shown on daily chart, one can ride the trend as long as close below previous day’s low is not taken out. We are showing Fibonacci extension of wave c with respect to wave a, which shows move towards 740 which is 76.4% projection followed by 790 which is 100% can be expected. However, it is best to use dips as buying opportunity since indicators are in overbought zone.
In short, trend for UPL is positive. It is ideal to use buy on dips strategy and avoid catching a top in this strong momentum stock as of now. On downside 670 looks like a good support which is near the short term moving average.
Happened: UPL prices moved towards higher levels of 740 followed by 770 levels retracing almost 100% of the wave a move. Prices made a high near 773.90 in todays trading session.
This shows that combining basic technical analysis along with Elliott wave technique can help in trading. Subscribe to our Intraday/Positional advisory tips. Also get an access to our “The Financial waves Short Term Update” and see what the next move of Nifty and stocks is? Get access to Intraday advisory and receive research report free – Check here
You can get to learn about these techniques in just 2 days span in my upcoming teaching seminar which is to be conducted on 24th and 25th of November 2018. Register now and also avail free Nifty and Bank Nifty report free.