7 October 2012

CIPLA - ELLIOTT WAVE UPDATE

Hi Friends,
CIPLA

In our last post we mentioned that CIPLA seem to have started its Down move in 'C' leg of Flat in Cycle Degree Wave 4. Of which Wave (i) seem to have over at 353. We mentioned that Wave (ii) might retrace up-to 78.6% to 387. CIPLA exactly retraced up-to 387 and started Tumbling Down.

On completion of Wave (ii) we posted a comment that Faster Retracement of this Corrective Rally  would help us to conclude that Wave (iii) down has started. CIPLA has Retraced more than 50% of this Corrective Rally in Wave (ii) up in less than 50% of time. Further, on hourly chart we can clearly see Impulse move down sub-dividing. So this satisfies the criteria for Directional move in Wave (iii) down. Following pure Elliott Rule, Wave (iii) can Extend up-to 1.618% of Wave (i) to 317 or 2.618% to 274.

The Current move may take a pause at 350-352 area & Retrace back to 368-370. Investors still have chance to Exit Longs before Wave (iii) starts accelerating. As a trader I would wait for a Corrective Pullback Rally to initiate Short Trade. And would not suggest to Buy this stock until Wave (iii) gets over. Since Wave (iii) is Fastest and Longest, Bulls must stay away from this stock.


Thanks & Regards,

Harsh Dixit.