Elliott Wave Analysis is a powerful tool if used properly. For instance, the following Elliott Wave Analysis of Dr. Reddy’s laboratories Ltd as shown in the chart suggests that a major extended third wave has likely finished at the Rs 1968 levels. If you had this stock in your portfolio, and noticed that the 5th wave has a target at 1976, would you have waited for the last 25 or 30 rupees before getting out? Of course not!
I am positive that there are countless traders who went long this stock above 1900, and are now hoping it will come back to break even. Whether you are a trader or an investor, you are better off learning some technical analysis.
Now what does the chart of Dr Reddy’s Lab tell us? Elliott Wave analysis tells us that a three-wave correction is due, because an extended third wave has been completed. We should look for a minimum correction of 23.6% of the 3rd wave, and that should bring the stock down to around Rs. 1600. That is the minimum target. It could go down a lot more! Suppose you own some of this stock, what should you do? You should consider selling on a recovery to around 1790 and not worry about it till it eventually comes down to around 1610.
There have been some requests for updates in GBPUSD. However, I could not post them here earlier because they were being shown to the members of the Exclusive Club.
I am posting three of the charts now, and will post the complete thread once the trade is closed.
As you can make out, it was possible to identify key levels and direction using Elliott Waves. The last chart shows a sell level around 1.5340, and the Pound reached 1.5319. The target was 1.5080 and it reached 1.5073. There is more on the other website, but I will post those afterwards.
Hello! I forgot to let you know that this article on Best Buy was posted in Forbes back in Mid Jan 2013. Bloomberg is reporting that BestBuy has added 1.5% to reach $17.13 in German trading after an analyst at Barclays Bank raised the stock to over weight, the equivalent of buy, from equal weight.
Some people think that Elliott Wave Analysis is largely the ability to compute Fibonacci Ratios. When I saw the attached chart today, I wondered whether this could be a nice example to share with you. Of course, I could be completely wrong, and EOG Resources could plunge to zero tomorrow. On the other hand, I do believe that there is a reasonably good chance for 126.50 to hold and for us to at least recover to 133, if not higher (maybe even to 137). Use this update to learn. Remember that the WaveTimes Blog does not offer trading advice! Enjoy.
Agilent Technologies was cut to sell vs hold by some analyst last week. However, that is not what triggered a 5.23% sell off on Friday, making it the worst performer of the S&P500 index. It could be the fact that a correction of the 1st leg down as shown in the attached chart is already completed, and so we could have embarked on the 3rd leg down. Any regular reader of these pages would know that whether it is a 3rd wave, or a C wave, the price of teh security concerned will move rapidly.
My comments are posted on the chart as usual, because why say more when you could accomplish the same with fewer words? Take care. Ramki