26 August 2012

INFOSYS ELLIOTT WAVE ANALYSIS - A LARGE FRACTAL

Hi Friends,


INFY-MONTHLY

This is the Monthly Chart of Infosys Ltd. We can clearly see the 5 Wave Bull Market Advance from 1993-94 to 2011. INFY Completed its Cycle Degree Wave 1 in Jan-2011.  We can clearly see the Declining Volume & RSI Negative Divergence Indicating End of Bull Market in Stock at 2011 High. And now the stock is Correcting this entire Advance in its Cycle Degree Wave 2 which can take the stock down to 1000 or even lower as per pure EW Guidelines.


INFY-WEEKLY

On a weekly Chart we can clearly see that prices have Fallen Below the Trend Channel of Circled Wave 5. Indicating that Cycle Degree Corrective Wave 2 is ongoing. One may argue that a 3 Wave Decline is complete at 2100 in July 2012. However, considering the Monthly Chart & Long Term Cycle the Price Pattern Implications & Price Objectives are not yet met with. So this Stock is not yet a Safe Buy for Long Term Investment.


INFY-DAILY

However, short term traders can play for possible short term moves. On Daily Chart it looks to be in its 'a' wave of the 2nd of (C) Wave of Cycle Degree 2. This 'a' may get arrested at 2540-2550. So one may like to Short this Stock after clear 5 Wave advance for 'b' of 2nd or wait for clear 3 Wave decline form the top of 'a' and play for next 5 Wave advance in 'c' of 2nd Wave up.

We would Prefer to Play for next 3rd Wave down which will be Sharpe Decline.


So lets wait & watch.


Thanks & Regards,

Harsh Dixit.