GREAVESCOT: Combining Rounding Bottom with ADX.
Dec 31, 2024
It is possible to capture massive stock moves using price patterns along with simple indicators like the ADX (Average Directional Index).
ADX- The average directional index (ADX) is a technical indicator used by traders to determine the strength of a trend. It commonly includes three separate lines. These are used to assess whether momentum is building on the stock or not.
We used these 2 indicators on Greaves Cotton and captured a massive 17% move in just one trading session. It's impressive how combining these simple indicators with price patterns can pinpoint momentum stocks for short-term trades, leading to substantial returns.
We published the following research on Greaves Cotton Ltd on 30th December 2024 in the “Vayu Momentum Report” which our subscribers receive pre-market every day.
Greaves Cotton Ltd Weekly Chart anticipated as on 30th December 2024.
Wave Analysis as on 30th December 2024:
Greaves Cotton Ltd. showed sharp rally in the previous session of more than 19% in a single trading day! The stock has formed a rounding bottom pattern. Price has closed above 259 which confirms the breakout of the said pattern. On the weekly chart, ADX is suggesting strong momentum can continue in this stock as it is showing readings of 31.88 which is above 25. For now, one should use buy on dips approach to ride the trend
Key Resistance: 305
Key Support: 266
Strategy: Use dips towards 275-279 as a buying opportunity for a move towards 300-305 levels as long as 266 holds on the downside
Greaves Cotton Ltd Hourly chart happened as on 31st December 2024
Happened: The stock has moved as we anticipated. Prices showed a rise of more than 17% from the lows and not only achieved our targets but also breached above it and made a fresh high of 319.50 levels in just one trading session!! It is fascinating to see how accurately combining basic indicators along with price can help to predict price targets with accuracy.
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