Monday, August 13, 2012

Look for support in 450-430 range on Ranbaxy!

Weekly Chart
This is a weekly chart of Ranbaxy. I am trying to count a 3-3-5 corrective pattern, a flat, possibly an expanded flat. Right now, on a smaller fractal though, we may be forming wave {B} of  (B). We may find support between 453-433 levels. Although minimum requirement for this correction is for prices to test 470 levels. As shown in the chart below once we finish the wave C of {B}, we may rise to form wave {C} of (B). But that is some time away for now. I plan to wait for wave {B} to complete and market to give me a signal that it is indeed looking at higher prices. 
Our last post on Ranbaxy was looking for a W-X-Y type correction, but obviously prices had something else in mind. Prices did fall as we expected but since the pattern that was forming was different, the ensuing price action was different. But since we have not yet broken down 445-25 range we may expect prices to scale 570, and may trade even higher.
Daily Chart

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