Monday, July 02, 2012

Heromoto, Tatamotors, Tatapower, Tatasteel - Elliott Wave Analysis

Heromoto Monthly Chart
Heromoto is rising in an unmistakable trend. I have tried to label the waves in sync with my expectations on Nifty. Expecting a wave [3] of V of {III}.

Heromoto Weekly Chart
On the Daily chart we have completed a clear 5 wave structure at [1], following the impulse a corrective action was expected and that is precisely what we got. The only problem is the wave (c) of [2], which has definitely not reached its full potential on the down side, the wave (b) may be developing as a complex 3 wave structure, but keeping in mind the action expected on Nifty, I am counting a running flat at the moment (though very rare). 
Heromoto Daily Chart
If the wave [2] is done with, we should be expecting a sharp and dynamic wave [3], the initial rise after the wave [2] certainly looks impulsive. Now we wait for the follow up action.
Tatamotors Weekly Chart
The chart below is a chart of Tata Motors, I feel we are in wave II and not sure what pattern it takes, but if Nifty is about to rise, we can expect the same for this counter.
Tatamotors Daily Chart
I have outlined two possible paths for this counter. We may rise sharply, as we have a clear 3 wave down move complete on the chart. So we may see the correction continuing, but the stock cannot go against the market, so only when we are through the resistance zone marked on the chart, we can be sure of the up move.
Tatapower Daily Chart
Tatapower and Tatasteel was discussed on this blog on 5th June 2012, the post link is provided here.We were expecting a rise in prices on Tatapower, in wave III, and that is precisely what is seen on the chart, Labeling I-II/[1]-[2] is encouraged by Prechter in his book. He suggests the potential reward is well worth the risk. The chart below is of Tatasteel and same action can be seen on this chart too. This the beauty of EWP, it helps us to spot opportunities for great reward, with minimum risk, in relatively less time window.
Tatasteel Daily Chart


  1. Hi Aniruddha, for your Tata Steel count above you have marked the big moves as A and B suggesting a correction whereas on your 17th Jan article on the same stock, you have suggested that this may actually be a 1st and 2nd waves of the 5th Major wave. May I ask you to clarify which count do you think is correct?

    Also, since Tata Steel didnot go up as suggested by you in this analysis, I think the count forming 2 (or B wave in the above chart) maybe a complex W X Y X Z formation which ended on 6th September.
    I would be grateful if you could let me know your thoughts on the same.


    1. Dear Andy,
      I try to point out opportunities whenever I come across them. It is expected that you incorporate the suggestions in your own trading system. Many times the original view has to be changed depending on subsequent market behavior. Also some times the action which follows confirms a pattern. I will get back with a latest count on tata steel soon.


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