Thursday, September 06, 2012

Axisbank - Elliott Wave Update

Daily Chart
The above daily chart of Axisbank shows an uber bearish possibility, marked with alternate count. Our preferred count calls for a support in the zone of 945-890, we are there, but that does not mean anything by itself. Now what prices do in this area is important, if we take support and start rising, we may see our preferred scenario of an {A}-{B}-{C} playing out. But if we break down through these support zones we are in trouble, the alternate scenario of a 1-2/1-2/1-2 may be unfolding on the down side, and that would be disastrous.
The indicators are surely oversold on daily fractal, but on weekly and monthly there is still plenty of room left on the downside. 
This is a crucial time for banking stocks, the "short term strength" I was expecting is nowhere to be seen yet, but till these support zones are broken I am hopeful, if they do break down, I will have to reevaluate my analysis. Part and parcel of a trader's life.

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