In my previous blog I had mentioned that this stock looks weak technically and will see a correction until 658 http://analyzestockmarket.blogspot.in/2012/08/sunpharma-futures-eod-analysis.html. Today Sunpharma made a low of 661which is very close to the target I had kept
What I did not expect is this sudden decline from 689 to 661. Now the charts are further turning bearish and I would like to give extended correction targets
Parabolic SAR has started show up above the candle stick charts which is an indication that this decline is not going to stop right away and will keep falling until it finds support first at around 645 level.
If that happens then according to Elliot wave theory wave A will end and a slight increase in price will start for Wave B and then a further decline will occur and will take wave C to around 635 level
So remain short on Sunpharma futures and expect the stock to decline further
Summary
If you have short around 670 - 680 levels then remain short and allow the stock further decline to 645 levels
No comments:
Post a Comment