JSWSteel: How to Trade Move from 162 to 138

Metal stocks have been under pressure since past many weeks. The serious selloff has continued in the stocks in the ongoing Bear market and one should avoid catching a low. The below research shows how Advanced Elliott wave – Neo wave pattern can help in identifying the trade setup for big moves.

Look at the below chart of JSW Steel published in the equity research report on 19th March morning before markets opened – The Financial Waves short term update

JSW Steel Hourly chart: (Anticipated as on 19th March 2020)

Happened:

Elliott Wave analysis: Following was mentioned on 19th March when the stock was near 164 levels.

On hourly basis, Prices are seen precisely moving within the red downward slopping channel and currently placed near the channel support. Further it is important to see whether prices reverse or bounce off from the same. As per wave perspective wave Y seems to be forming Diametric pattern wherein wave e (blue) is under formation.

The above shows that by understanding the pattern under formation one can form prudent trade setup. As we were aware prices were at lower end of the channel and wave e of Diametric was probably completing a pullback was expected and then the down move resumed after giving a pullback. This only shows power of Advanced Elliott wave – Neo wave and why it is important to learn new patterns from trading perspective.

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