18 September 2012

CIPLA ELLIOTT WAVE - UPDATE

Hi friends,


CIPLA

In our last post we mentioned about final top in CIPLA near 380 in 5th wave of (c) of Flat in 'B'. The Stock went little above that to 396 to reach its final top in 5th wave of (c) of Flat 'B'. Since it breached above the 380 mark i.e. beyond start of Wave 'A' its surely the case of an Expanded Flat Correction where Wave B often extends beyond start of Wave 'A'. So a minimum 100 points drop is expected in Wave 'C' of Cycle degree Wave 4.. C of Flat is always an Impulse. So an impulsive fall will confirm this wave count.

CIPLA HOURLY

On short term though we still havent got confirmation for 'C' of Flat a clear 5 wave Rally from low of 300-396 is visible. Further, an Ending Diagonal in 5th confirms that Uptrend in Stock is over. We can also see a clear RSI Negative Divergence on hourly chart between wave (iii) & (v). Breach of (ii-iv) line further confirms that Uptrend is over. Further, we can see a clear 5 wave decline from top of 396-357.. I have marked this as wave (i).. And now the stock may correct this fall up-to min 61.8% Retracement to 380 or max 78.6% to 387.. Wave (ii) may take shape of Flat, Traingle, Zigzag or Combination and take more time than wave (i). Wave (ii) generally retraces the most. This is not a buy call but an opportunity for Investors to exit the stock.


Thanks & Regards,

Harsh Dixit.