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