Market Analysis With Megh Mody

                                     Yes, you heard it right and you will see it after reading this article. A diagonal pattern or a wedge pattern occurs in some fixed waves. This pattern forms when there is a massive distribution or accumulation happening. Nifty often forms diagonal patterns and the post implication is hazardous whether its 2008, 2013, 2014 fall all has diagonal pattern forming. Diagonals are of 2 types one is an Ending diagonal and other is a Leading diagonal. In ending diagonal one of the types is also known as Expanding diagonal. The rise from 5933 till 6869 in Nifty was so fast that majority of analysts thought at every peak that Nifty will reverse and it proved them wrong thus making all time high. Also on daily chart it is quite visible that RSI has started exhibiting negative divergence which suggests that upside momentum is slowing down. Is Nifty sending an ...

The   Dow Jones Industrial Average , also called the   Industrial Average , the   Dow Jones , the   Dow Jones Industrial , the   Dow 30 , or simply the   Dow , is a   stock market index , and one of several indices created by   Wall Street Journal editor and   Dow Jones & Company   co-founder   Charles Dow . The   industrial average   was first calculated on May 26, 1896. [1] Currently owned by   S&P Dow Jones Indices , which is majority owned by   McGraw-Hill Financial , it is the most notable of the Dow Averages, of which the first (non-industrial) was first published on February 16, 1885. The averages are named after Dow and one of his business associates, statistician   Edward Jones . It is an index that shows how 30 large   publicly owned   companies based in the   United States   have traded during a   standard trading   session in the   stock market . [3]...

The   Bovespa Index   ( Portuguese :   Índice Bovespa ) is an index of about 50   stocks   that are traded on the   São Paulo Stock, Mercantile & Futures Exchange   (Bovespa:   BO lsa de V alores do   E stado de   S ão   PA ulo). The index is composed by a theoretical portfolio with the stocks that accounted for 80% of the volume traded in the last 12 months and that were traded at least on 80% of the   trading days . It's revised quarterly, in order to keep its representativeness of the volume traded and in average the components of Ibovespa represent 70% of the all the stock value traded. IBOVESPA is an accumulation index. Its index number represents the   present value   of a portfolio begun on 2 January 1968, with a starting value of 100 and taking into account share   price increases   plus the reinvestment of all dividends, subscription rights and bonus stocks received. As per Ellio...

On 7 th March we anticipated that Reliance Capital will move till 377-380 levels, we had also mentioned that it will take few months to reach this level. Below is the excerpt of this ADAG stock where we had mentioned the target level when the stock was quoting at 329 levels. We are aware that prices has given a bullish break in falling red channel pattern which is visible on the charts, we are also aware that there is a positive divergence which is marked by blue line. All this factors suggests that the trend is changing from negative to positive. We have also used Retracements and Projections to find out the possible target for this stock. Wave b of the second correction has taken the support of 80% Fibonacci retracement of the previous up move (289-407). Which clearly suggests that wave b of the second correction is in flat pattern. By knowing which pattern it has formed now it is easy to forecast the future price for this stock by using Fibonacci projections. By...

The BEL20  is the benchmark  stock market index  of  Euronext Brussels . In general, the index consists of a minimum of 10 and a maximum of 20 companies traded at the  Brussels Stock Exchange . Since 20 June 2011, the BEL20 has contained 20 listings. The index was moving in a positive direction forming a higher high and higher low formation but RSI which is a momentum indicator has started exhibiting negative divergence which suggests that momentum on the upside was slowing down. Prices are moving in an upward sloping blue channel and can move down to test the support of the channel which is near 3000 levels. Breach of 3000 levels will infuse further selling pressure. As per wave perspective, prices were moving in an impulse upmove from December 2013 and made 5 wave structure. The high was 3154, thereafter it started moving in a negative direction. The current downmove is corrective in nature. In short, BEL 20 can move down further and can ...

In our previous article dated on 30th March 2014 we had mentioned that, “News always comes after prices have given a breakout and has started moving up which is very difficult for traders and investors to capture. To eradicate this problem it is necessary to use technical analysis and Elliott Wave theory to know the possible reversal before the news arrived. By using Elliott wave theory  one can capture not only the reversal but also can forecast which is been shown in the below daily chart. ” Prices move exactly as anticipated which is shown in the below daily chart

After the recent selloff, this currency pair seems to be moving in the north direction with lot of strength. Whenever, such sideways to positive movements happen after significant fall, one n eed to understand that the asset class is making a basing formation for the next leg. In the below daily chart of US Dollar British Pound, we have also used ADX to measure the trend for this pair along with that we have shown Elliott Wave Counts. We can observe from the chart is, prices were moving precisely in a downward sloping red channel, but there was a bullish breakout in falling channel formation in the month of March 2014 which opens positive possibilities. After that prices came down and took the support of the trend line and have managed to bounce back. Trading in the direction of a strong trend reduces risk and increases profit potential. The average directional index (ADX) is used to determine when price is trending strongly. In many cases, it is the ultimate trend indicator. After al...