Lets keep patterns, triangles and Wave theory aside for sometime. Lets keep it simple for State Bank of India , as you can clearly see simple trend continuation and we are planning to buy on the pull back completion. Some may feel that how can we be so sure ? Well, as per my rule book trend continuations with good risk :reward are valid enough. Please check...
B Point @ 78.6 % XA C point @ 71.3 % AB 1.27 AB=CD ( 201.4) D point @ 1.27% of XA (202.5)
SBI looks to have entered into a trend reversal phase with a 5wave count which can potentially be wave 1 of a bigger wave cycle. wait for a wave 2 pullback, rs170 can be a good price to enter. holding period 1year approx.
Happy Vishu :) Note : Gap up happened previous day (190's - 191's ), so market will expect to fill the gaps and as expected if it fills the gap, it will be in our marked zone for Buy. This trade may extend for a day or so if market movements are little slow. Though its risk:rewards little more than 1.1, its good trade as per my trade rules. Follow your Plan,...