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Friday, January 9, 2015

Astro Technicals Aurobindo Pharma

This stock had an amazing run from 2013 August onwards. The stock zoomed from 138 to as high as 1179 today!
Let us look at two long term charts of Auro..

We see the stock is in an extended third wave,and that at 1238, this will achieve 4.854 times the 1st wave from a mere 20.Interestingly, the long term cycle top also seems to indicate 1238..

In this chart we see Auro reaching out to the 67.5% line and often when a stock breaks the 45 line, it tends to move towards the next logical target.It is also customary for stocks to start falling back once it touched the 67.5 line. Fall back is generally towards the 45 line.
Keep in mind this is a monthly chart. So the moment the trend changes down, it would be the 4th wave in operation. Those who have invested in 2013 and 14 may book profits around 1238 levels.
After that the stock seems to have a prolonged down trend for a year or so, and then picks up steam sometime in September 2016.

6 comments:

  1. Thanks. Whenever you find time, will appreciate if you can post about marksans pharma technicals.

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    1. Vidyut, it will be very difficult for me if each one of you keep asking for different stocks! Tell you what, as time permits, I will select a few charts which I feel will do well, based on their sectors. Two sectors which I think will do very well are Finance and Pharma. We will look for some reasonably good stocks and analyse them.Any way, this is not the time to invest..Let us wait till the heavy aspects are out of the way.

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    2. Thanks. Looking forward for your analysis.

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  2. sir, very difficult to trade monthly chart (aurobindo pharma) any suggestions

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  3. Nanda, Aurobindo pharma is not a trading stock. It is to be accumulated in dips. For trading we must select stocks which move both ways.For example, Karnataka Bank.

    ReplyDelete