Thursday, February 06, 2014

DrReddy Technical chart

Hi friends,
                     Looking at Dr reddy technical chart ,The stock has been rangebound
for some time now after a good rally.If we count waves from 2400 onwards,We
can see that the stock is very well in process of making as impulsive move.
Lets look at the chart.
DrReddy Technical chart
From the chart we
can see that we had a
simple abc correction
in wave 2,and presently
in 4th wave having a
broadning formation
downwards abcde
with today forming the
e leg we have a trade set
up here for a long.

A long can be initiated in the stock at 2600 and lower for a target of 2700
stoploss would be 1st wave top ie 2555 ,So to have a good risk reward ratio
try to buy nearer to stoploss.



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