About 6 weeks ago, I posted my Elliott Wave Analysis of Reliance Communications LTD on wavetimes. At that time, the stock was trading at 63.40. A bearish case was presented to you, and I had requested that someone might kindly alert me if it dipped to around 44. Several readers have enthusiastically responded via email, facebook and twitter as well as through comments on this blog as the price dropped below $47. Should we still be looking to buy this stock near $42.25 as originally discussed? I suggest that we put in place our analysis of the most recent moves. I have now gone down to looking at the fifth wave in detail, and it looks to me like we have either just finished the third sub wave, or still in the process of doing so. Once we get a 4th wave bounce, I will be able to determine where a low-rsik buy order can be placed…Take a look at these charts and afterwards, be sure to stop by at my official website.
By the way, I think a likely scenario is going to be as follows: Because wave 2 was simple, we should expect wave 4 to be complex. We will probably get an irregular correction. Typically, when we get a new low, many of those who went long of the stock today will dump it thinking it will continue to go lower. Unfortunately, it will turn back immediately and go up as a C wave of the 4th. Just about the time when these same traders decide to go long again the market will turn around to go lower as a 5th wave, and once again these traders will be stopped out. That last time will be a perfect spot to go long….we shall see. Let us get the 4th wave finished, and I will try and update where one might think of going long. In the meanwhile, please do let me know around 44 and 42.25, the levels we originally indicated in the July analysis.
Best to you.
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