22 August 2012

CIPLA ELLIOTT WAVE

Hi Friends,

It is very interesting to see when Market is distributing different stocks at different time. Time Cycle wise Pharma stocks are the Late Movers in Market & generally form Right Shoulder of the Market Head & Shoulder.


CIPLA

Current advance on CIPLA looks to be nothing but a corrective advance in (c) leg of the 'B' of Flat. CIPLA currently looks to be in Cycle Degree 4th Wave Corrective which is a large Fractal & might be developing as Flat Corrective.

A 3 wave move from 380-275 is marked as 'A' leg & Currently its moving in another 3 wave move up in 'B' leg. The 5th of (c) shall take some more time till mid Sept. to reach 370-380 area. Once 'B' leg is over the Stock may start drifting lower in its 'C' leg of Flat towards 275-250.

Currently we are examining this preferred Count of Flat in 4th Wave. In case of Flat C shall be a Clear 5 Wave Move Down & may take lesser time than A & B. However, we would consider the alternative of Zigzag as CIPLA starts Drifting lower towards 275 & internal legs unfold.


So strategy for Investors is to exit the longs as stock moves up.


Thanks & Regards,

Harsh Dixit.