Wow! From a low of Rs 73 in May 2012, National Building Construction Corporation Ltd, an Indian company that offers project management, consultancy services and real estate development etc, has climbed to Rs188. Can this rally be sustained, and if yes, how high can it go? Elliott Wave analysis shows we have reached a first key level already at 188.50, being 38.2% of the distance from 0 to 3 (Remember this from my book “Five Waves to Financial Freedom”?) However, is this the end of the move? The fifth wave seems a bit incomplete and shoudl we break above the 188.50 level the stock could easily run higher to the Rs 212 level, which is the 61.8% measure of the 0-3 distance. Also, when we draw an Elliott Wave channel, by connecting the bottoms of waves 2 and 4 and drawing a paralled via the top of wave 1, we see that the 212 level could be reached in the next week or so. That is about 15% higher than current levels, and so is something traders can keep an eye on.
Remember, this blog aims to teach you how to use Elliott Waves. It is not trading advice! Good luck Ramki
5 Comments
Hi Ramkiji,
Just for learning purpose, for National Building count changes & target of 212 gets void if the price is pulled down to 175-170 level in coming days?
Piyush
Piyush, Remember what is discussed in my book? Look for a 5 wave decline past a reflex point??
Great pick dear Ramki and a fantastic low risk high profit trade. The target seems to be quite possible as the daily and weekly momentum indicators are also positive.
Thanks and Regards.
oh my god this is crazy…when will you update on this post..stock is now at 135..i entered above 188.5…what should i do?
Samay, I am sorry to read that you went long at 188.50 and didnt do anything about it until the stock reached 135. First of all, this Blog is meant to teach you ELliott Waves. There is no trading advice here. Secondly, a trader just cannot buy (or sell) and sit around waiting for a profit. He has to manage his positions. He needs to have an affordable stop identified even before he opens a trade. Also, I am not currently able to post updates on this Blog as frequently as before because of my other commitments. In fact, even my resposnes to comments come only on weekends. Finally for NBCC, if you read the comments carefully, you will see that the minimum target for the 5th wave was already met, and while I did expect it to gi higher, (and the stock did produce a profit for you for a few days) the market changed, and you should know that if it didnt prodyce a profit for 3 days, then something is going wrong.