7 November 2012

CIPLA - ELLIOTT WAVE UPDATE

Hi Friends,

Today CIPLA touched All Time High 398 after reporting Better than Expected Q2 Earnings. However, I believe this Depicts the stage of Euphoria & marks for the point of Maximum Financial Risk but also Maximum Financial Gain.


CIPLA - Daily

In last post I mentioned about CIPLA Top near 396 in Vth Wave of (c) of Irregular Flat B Wave. Though initially CIPLA dropped till 352 very fast with Current move its clear that Top in Vth might still be pending. There is little shifting of Wave labels. However, main view still remains the same. The view for Irregular Flat B Wave will be Invalidate only in case the stock moves beyond 415.

On a Daily chart we can now clearly see a 5 Wave Rally from Wave (b) low of 286. Today's Candle marks for a Hanging Man which could turn out to be a Bearish Reversal Pattern. We can also see RSI Negative Divergence & Huge Volume with Today's Candle. So Bulls need to be Extremely Careful here.


CIPLA - Hourly

On Hourly Chart we can see that Stock is moving in a Steep Upward Rising Channel. The Trend will remain Up until this Channel is held. However, RSI Negative Divergence Indicates that possible Trend Change on Cards. Stock has achieved both Wave (I=V) target & also Triangle Breakout Target Today. A close below Hourly Trend Channel would Indicate The Short Term Trend Change and Close Below Wave 2-4 line would be initial Indication for a Major Trend Change. Faster Retracement Below 352 will confirm the Huge Drop in Stock.


So lets wait & watch..


Thanks  & Regards,


Harsh Dixit