Tata Power Elliott wave : CMP 90.80
Our previous post of Tata Power was on 1 Dec 2017, CMP 90.35. So we’re at the same level now – big deal. Not quite ! We were awaiting a move to apprx 87 for an entry before price starts climbing again. Yesterday 6 Dec, price obliged by falling to 87.15. With reasonable confidence, we can say that we are looking upwards in a wave 3 (or C) to 107-109.
Due to this being a high probability setup, i’m afraid we jumped the gun a bit and entered the trade on 5 Dec at 89.30 (yes, should’ve waited). Pls check previous post pasted below this chart (do see the level marked at 61.8% on previous chart and check where price actually ended its downturn).
Previous post : 1-Dec-2017 : Tata Power Elliottwave Count : CMP 90.35
Tata Power is in large scale triangle (not shown). Within this triangle, 5 waves are visible to the upside from 81.60 to 96.90.
This is a high probability trade setup.
We will now be trading for wave 3 which should reach 107-109. 61.8% Fibonacci retracement of this 5 wave move works out at approx 87 which makes a decent entry point. Risk management level must be maintained at 81. Cautious traders could wait for a further small 5 wave up as further confirmation before entry.
This is not a buy and hold trade. It is a trade lasting a few weeks. Once target is achieved, then exit is required.