Some of the readers of this blog have been asking for analysis of specific stocks, apart from the Nifty.Accordingly Iam posting the charts of one stock today. Some others shall follow.We will begin with an investment perspective first.Trading ideas can be discussed later.
The stock taken up for review is Biocon.As usual I shall post some charts with brief descriptions.
One of the first thing which strikes us from a long term perspective is that, the long term price cycle is coming to an end.Biocon is in the third impulse wave, within which it is forming the fourth wave. In the months ahead, it may travel down to the 420/430 levels again before a final 5th wave inside 3 is enacted.Since wave 2 ( shown in blue numbers) was a simple affair, wave 4 could be a complex and time consuming affair.
A closer look at the daily chart also reveals the same picture...Biocon is currently in wave b of 4 which could top out in the 515/520 range. Then it could be expected to swiftly come down to the 420/430 range.Note how the stock exhibits a mirroring tendency with the blur vertical line drawn from top of wave 3 as axis..
Here is another daily chart, from a long term view...
So as an investor, I would watch Biocon for some upticks, to offload and pick up the stock once it declines to the 420/430 range.
2 comments:
My Dear Sureshji
Biocon has exhibited its nature of price trajectory , the same way you have observed on September 29 2014.
Hoping for the 5th wave inside 3
Indeed grateful and thank you
Kannan
My Dear Sureshji
It is nice to see biocon obey and also a disciplined follower of wave.Thanks for your insights and without which it would have been a painful journey.
Now we are close to your buying target and still more base formation and validation need to done, I agree.
How do you see the stock getting impacted post your G low down in nifty when it happens.
Some update on it will be helpful.
Regards
Kannan Srinivasan
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