Trading is simple if we use objective tools to trade the market.
“The Financial Waves Short Term Update” covers research on Nifty and 3 stocks with in-depth analysis. We have been using basic technical tools along with Elliott wave theory to ride the short to medium term trend. Recently we were able to capture the trend of SBI and the part of the same is shown below:
(Part of research published in the morning of 7th April 2015)
As shown in 60 mins chart, prices have decisively broken the black downward moving channel and has made higher high higher low formation. This suggests that upside retracement of the prior down move has started. Now, as long as 263 level is intact on downside short term outlook for this stock will remain positive. However given the RBI Monetary policy today, one should trade with strict risk management and today’s closing will be important.
In short, with the support of 263 level short term outlook is positive for SBI. On upside prices are expected to move towards 285 level where channel resistance along with 50% retracement is placed of the prior down move.
Happened: protecting the support of 263 level, prices moved higher and made a high at 294.90 levels on 17th April 2015. Now, what should be the trading strategy?
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