Real Estate stocks like DLF, HDIL has seen some serious selloff over past three days and the fall has retraced major portion of the rise in just a few days’ time. This is the power of Ending Diagonal pattern.
Look at the below research on DLF which was published in “The Financial Waves short term update”
DLF 60 mins chart: Anticipated on 13th September 2017
DLF 60 mins chart – Happened
Following was published on 13th September – As shown in 60 mins chart, minor wave x is forming Zigzag correction pattern and as of now minute wave (c) is ongoing which is forming Ending Diagonal Pattern. The rally has also arrived at the channel resistance and now price action from hereon will be crucial to see. DLF is at important juncture and momentum on upside is reducing. Break of 189 will suggest trend has reversed on downside and then expect move towards 175 levels.
Happened: DLF reversed exactly as expected from the same level mentioned on 13th September. Prices did not take out the high and reversed back sharply. As soon as the level of 189 was broken the selling pressure intensified thereby resulting into serious capitulation in this stock.
The above analysis simply shows the power of Ending Diagonal pattern which is defined as per Elliott wave. In this post the completion of pattern prices retraces back to the starting point of wave c in half or just 1/4th of the time it took to form. We can clearly see the same happening here which provided classical shorting opportunity.
Going forward: It is prudent to avoid catching a low in this fast falling market and use any pullback as shorting opportunity unless the resistance levels are decisively broken on upside. This article is only for reference purpose and use the actual report before taking action.
Subscribe now to “The Financial waves short term update” and see yourself how to trade Nifty, Bank Nifty and stocks from here on using Elliott wave analysis, crucial support and resistance levels and what to expect when majority are caught on the wrong side of the trend. Trust me this fall is much bigger so far than seen in entire of 2017 and it is important to keep riding the trend which is currently negative using trailing stop method. To know where to trail the stops and which levels to enter get access to the research here – Equity research report