Ambuja Cement: Predicting Through Gann Fan

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Ambuja Cements is one of the leaders in cement sector but from past 3 months the stock has disappointed many investors and traders.

When the stock was trading at 210 levels in the month of July 2013 many investors thought that the stock will cross its previous high of 223 but it failed to do so and the reason was Holcim taking over Ambuja Cement. But does news drive the stock prices?

We will see with the help of advance technical tool known as Gann Fan. Gann Fan was one of the inventions of William. D. Gann. He always believed that when a stock, commodity or currency price favors a particular angle then it will test angle above and vice-versa.

Daily Chart: Ambuja Cement.


Analysis

In the late 2008 Ambuja Cement has started moving in a positive direction. The entire move from late 2008 to 2012, prices moved by forming higher high and higher low. Now in early month of this year prices started to move in a corrective manner.

We have placed Gann Fan from late 2008 and we can observe that in the early 2009 prices faced the resistance of 1x2 line and then it came down to test 1x1 line and eventually it broke the support and tested 2x1 line in the mid of 2011. From 2011 till late 2012 prices managed to stay above this line and made a high of 223, but in the mid of 2013 the stock broke this crucial support of 2x1 and can now move down to test 3x1 line.
We are expecting Ambuja cement to move lower till 145-142 levels over short term.














Comments

Unknown said…
The developments in cement price and its fluctuation of Ambuja Cement is nicely explained. Thanks for sharing it.


Cement Prices Bangalore
22 October 2014 at 15:03
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