ONWARDTEC: Identify the Up move using Ichimoku cloud and Cup and Handle pattern

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Trading can be very simple with the application of basic technical analysis but provided that it is in the right context. Here, the Ichimoku cloud was applied to gauge the stock direction.

Look at the below chart of ONWARTEC that shows the forecast done on 07th December 2021 in the morning research report "The Financial Waves short term update" before equity markets open.

ONWARDTEC Daily chart: (Anticipated as on 07th December 2021)

ONWARDTEC Daily chart: (Happened as on 03rd January 2022)

Wave analysis as we published on 07th December 2021

On the daily chart, in the previous session prices formed a bullish candle pattern. A cup and handle is a technical chart pattern where the cup is in the shape of a "u" and the handle has a slight downward drift. A close above 283 will confirm a breakout from the pattern. Prices are trading above the Ichimoku clouds which indicates that the short-term bias is bullish.

In short, the trend for this stock is positive. Use dips towards 270-265 as buying opportunity for a move towards 300-305 levels as long as 250 is intact on the downside.

Happened: The stock moved precisely as we expected. The stock took a dip towards 265 levels after which it achieved our target of 300 levels making a high of 319 giving more than 20% return.

By combining Elliott – Neo wave along with Ichimoku cloud one can form a clear trading strategy and plan and derive target levels using Fibonacci. Master of Waves (MOW) Live Event on 15th – 16th January, To be a successful trader you need to have an Edge. Along with Neo wave, we will also discuss Time cycles to time the trade to the very hour. Are you in with me! Fill out the form for more details