DJIA AT MAKE OR BREAK

Hi Friends,

DJIA - Daily

Its been long since we have posted something on Dow Jones Industrial Average which is one of the most tracked Indices in the World. But currently it's at a Make or Break Point. 

DJIA - Hourly

DJIA has been moving up in a Channel since Oct. 2011 lows & taking support at lower boundary line. Currently it has a strong Support near 12970-13030 which if held DJIA may further Rally to New High to 13750-13800 till Mid Nov. On Daily Chart it's Oversold & on Hourly Chart it is showing a positive RSI Divergence. So a Bounce from current level is very likely, but Traders shall look for Faster Retracement of the Falling Segment as confirmation for Rally towards New High.

DJIA - Weekly

On a weekly chart also DJIA has been moving up in a Chanel since March 2009 lows. It's a 42 months long Recovery Cycle which is Maturing. While, most of Analysts, Financial Magazines & Investment Bankers are Calling this as a Long Lasting Bull Market; we still believe that it's just a Bear Market Rally Which is Driven by Easy Credit through QE's. And this Credit Bubble will Burst soon. Therefore,  if DJIA manages to hold this Support & Rallies to New High; Investors shall use this Rally to Liquidate their Longs.

We will post more on Long Term Cycle on DJIA & How today's Investor Sentiments Depicts Start of Yet Another Forthcoming Stock Market Crash in our next post.

So lets wait & watch..

Thanks & Regards,

Harsh Dixit.

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.

INFOSYS - ELLIOTT WAVE UPDATE

Hi Friends,

INFOSYS

INFOSYS

In our last post we mentioned that INFOSYS seems to be in Wave 2 of (C) of the Cycle Degree Wave 2, which might develop as Zigzag Correction. The correction seems over at 2648 and it might have started moving in its 3rd Wave down. Generally Zigzags are Bounded by Channels. So until the stock doesn't break above this Channel our assumption of wave 2 holds true. There could be a Double or Triple Zigzag & stock may try to fill the Gap at 2740. But owning this stock as an Investor is still bit Risky. 

This is not a Short Call on the Stock. But an alert for Investors to exit Longs. For Short confirmation traders mus wait for break down from the rising channel. As a trader I would wait patiently till the stock breaks down from the Rising Channel an initiate Short trade on a pullback.


So lets wait & watch..

Thanks & Regards,

Harsh Dixit.