This post shows how we traced and projected a path of the BSE Power Index.
As this is not a trade-able instrument, how is this useful ?
One could simply trade the top 3-5 companies that make up the Index as those would have the highest weightage in the index.
BSE Power Index Elliott Wave Analysis. As on 12 Nov 2020. CMP 1861
Target above 1800 has been met. We are now neutral on the Power Index.
Count 1 : Note the larger count is pure hypothesis. Wave B target has been met, but could rally further.
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Count 2 : This count shows a decline is due but the larger rally is not complete. Again, larger count is pure hypothesis.
BSE Power Index Elliott Wave Analysis. As on 27 Oct 2020. CMP 1710
In our post of 20 Oct, we said "Short term, a rally is expected. Price needs to break above the green trendline with a daily close above 1650 as confirmation."
Price has quickly reached 1710. A rally above 1766 is on the cards, likely 1800 levels.
The top 3 companies in the BSE Power Index have rallied between 3%~6% in the last 3-4 sessions.
BSE Power Index Analysis. As on 20 Oct 2020. CMP 1623
Long term structure is purely hypothetical as it is unclear.
Short term, a rally is expected. Price needs to break above the green trendline with a daily close above 1650 as confirmation.
A target above 18,00 is a possibility.
BSE Power Index Elliott Wave Analysis. As on 26 Aug 2020. CMP 1750
Price has followed script well from previous post of 13 July 2020.
Price did break out from a bullish triangle. The near term rally could be nearing an end. A decline to roughly the 1600 level is probable, before the rally resumes towards the 1850 ~ 1950 level.
The larger time frames are not clear, so the larger counts are purely a working hypothesis for the time being.
BSE Power Elliott Wave Analysis. As on 13 July 2020. CMP 1574
BSE Power is at or near support. The long term wave counts are open to debate and are unclear, but the daily chart could be showing a bullish triangle in a small wave (x) ready to break out to the upside.
A decline to 1525 would change the picture as price would fall below a trend line (green), but it is a small stop loss compared to the target of 1800 ~ 2000.
