Piramal Enterprises Limited analysis

Piramal Enterprises limited (PEL) seems to be forming a multi-month correction pattern in daily chart. 2097 that it did in August 22nd was the end of some impulse wave. From then onward it retraced back to 1366.05 forming the 'A' of the correction wave. Further on it moved up in multiple correction pattern resembling a triangle. Triangles are features of 'B' waves.

Internal wave structure wave structure of this triangle also resembles the a-b-c forms. Accordingly we might have completed the 5th wave of the triangle 'e' at the height of 1927.40 or there is one more up pending till 1965.

After the completion of this we can expect an impulsive move down towards 1450-1300 area in 'C' wave. 

Then? well we might be completing the correction all together or these three waves could be just the 'a' and another 'b' & 'c' pending. Or we can expect a 'X' and another a'b'c.

Whatever be the case, we can at least expect a move up and we might have found the low for recent times to come.

Daily chart with Elliott Waves for Piramal Enterprises Limited.

Nifty Price acction 01-03-2017

There are basically 3 possibilities from here for Thursday's move:
1. Move down till yesterday's price congestion zone bottom and them move up
2. Move up till PDH and then a weak PB and then BO
3. BO and a weak PB => BPB

The up move from the low of Tuseday was very strong yesterday morning. The subsequent sideways move till the afternoon was very weak. Again the subsequent up move was very strong and the end of the day down move or the last two candles were still weak. Hence option 2 and 3 are the most preferred options.

Will observe the price candle by candle in TTF and see which of the path market takes. Or will it take a completely different path?

OnMobile Price Action analysis -27-02-2017

OnMobile MD and CEO Pancholy resigns Following this news Onmobile lost 10% on Monday, 27-02-2017. It crashed to 76.25 at one point. So to analyse the situation I opened the daily chart of OnMobile.

79-80 is a strong support zone for OnMobile. This was tested three times earlier. Fourth time it broke the level but quickly bounced back rejecting the lower level. Now we need to observe how the next bounce and subsequent re-trace. If the bounce was strong and retrace is weak then it will be a very good sign to enter long position.

Nifty Price action 28-02-2017

Nifty expectation for 01-03-2017

30 min chart:

Nifty 50 top constituents

Weightage of the top constituents of Nifty 50:

Nifty - 14-02-2017 Price Action

Identifying Strength and weakness for price action trading:

Why is this important for price action trader? It is simply because price action trader is trying to trade in the direction of strength or trading in the direction of fading the weakness.

A simple trick that we will use for identifying strength and weakness is to draw a line from the starting of the swing to the end of the swing. Do the same for the move in the opposite direction as well. Now observe the slope of the line in both directions. The steeper the line stronger the trend. Low gradient of the line indicates the weakness in price in that direction.

One may be wondering how to find out the slope or gradient. It is done with the naked eye and using best judgement. No specific tools are required for this activity.

Let us consider the price action of Nifty 50 index for 14-02-2017 in HTF (30 min chart) & LTF (3 min chart) respectively:

30 min chart:

3 min chart:

 

I have color coded the strength using green line and weakness using red line.

We will use the HTF for reference and TTF for trading decisions. Based on this we will identify the trading opportunities.

How can we use this information for preparing for tomorrow?

Well we will use the currently available information to anticipate future moves and prepare for an eventuality where

1.        Market moves as anticipated
2.        Market moves in opposite direction

In both the case we will be ready with our S/R levels. Further during the live market we will again observe the developing strength and weakness. Also using the S/R and swing high/low we will be ready to take the trade.

Nifty 13-02-2017 price action

Nifty in the early morning move was a strong down move. Followed by weak up move which had multiple bounces.

Goal of the trade is to trade in the direction of the strength or fade the weakness.

So in this case  the ideal thing to do was to sell near 8813 NS around 10:18 am.