iCharts Discussions

[mrvishal_g]

Hello Friends,

I am Vishal. I post rarely.
Recently i find Hindalco as a very good trading opportunity. I want your comments.

Hindalco close at 144.65 on Friday. It has completed fifth wave of downtrend at 128 then first wave of uptrend on 160 now it complete 2nd wave of uptrend at 140 (if i m not wrong) 3rd way is started which target is near 168-170 atleast. The stop loss is 139 on closing basis.

Please provide your comment bcoz i want to buy a lot in future. (which will be my long time future trade .)

Vishal

[casper]

bhaiya

i dont know wave analysis, since u asked for a longer term view, i see the following version in weekly chart of hindalco

1. red down sloping tl is ur down trend line, unless broken, all longs will end around it

2. green flat tl is a strong range of support, if its broken, hindalo will go down at least 100 rs down side

3. the black pattern is a bearish flag, if it gives a break down, it will break the green tl too

4. in such a scenario, i have two hopes for going long

a. bearish flag breaks down and the some how finds support on green tl, preferably with a + div in rsi,

b.the upper trend line of the flag breaks out , making the flag null and void

otherwise, its too hard for hindalco to give any substantial up move

[ only my views bhaiya, if there is any thing related to wave, then i am not the fittest guy to comment about it]

[rk_a2003]

Hi Vishal !

The fundamental analysis is also supporting the tech analysis provided by Casper .The world is reeling under double dip recession fears; PIGS in Europe threatening with bankruptcy. In such scenario it is hard to believe that the demand for metals will go up.

But still we don’t know! the advanced countries are well known for their crisis management capabilities especially USA (though they can never prevent crisis as such).We cannot rule out the possibilities entirely.

I too don’t know much about wave theory. I am posting a ww chart of hindalco which suggest a target of 205 around Feb/March 2012.

But personally I don’t like to take up any trade on long term basis if fundamentals are not supporting.

Since you said you are going to take up a long term trade, I suggest a stop loss of 134 on closing basis.