Hi friends,
Lets try to analyze the above script(RENUKA SUGAR)using Elliot wave.
The green arrows represent impulsive 1 and 3 wave.
The red arrows represent 2 and 4 corrective waves.
The dotted green arrows represent probable price movement in 5th wave.
There should not be a problem in figuring about the waves as its crystal clear from the chart above,
Lets have a closer view, we see that 4th wave is a triangle which broke up near 380.
This was given a buy here.(EETC Free Call)
Now with the help of FIB levels we can try to predict the subsequent movement of the price in 5th wave(triangle breakup initiated 5th impulsive wave)
Also see how important FIB level coincides with previous resistance point.
So here we saw how Elliot wave along with FIB can end up in a great trade.
FEW GOOD ELLIOT READS:
Bond Markets: Inverted Yield Curve Still Dangerous
http://www.elliottwave.com/a.asp?url=features/default.aspx?cat=pmp&dy=nth&cn=6bot
Does Elliott Wave Work Stock by Stock?
http://www.elliottwave.com/a.asp?url=features/default.aspx?cat=emw&dy=nth&cn=6bot
Relevant news on sugar sector
http://aiiireports.blogspot.com/2007/03/govt-to-create-buffer-stock-of-sugar.html
Regards
Rish
(EagleEyeTrade)
