Ranbaxy rallied smartly, but it was a [c] wave of an intermediate X wave, atleast that is what a plausible wave count would suggest. If it is so we can expect another 3 wave downmove in Ranbaxy. The level of 525 is all important for this scrip, it marks the 61.8% retracement of the previous 3 wave correction. And prices are getting resisted at this point. If we break above this level of 525, we may see prices rising to another resistance level of 570. Above which a new uptrend will be definitely confirmed. But should prices start falling from here, we have two very important supports which should be respected if upmove is to resume from here. Those are 445 - 425. If we break below this then we are sure to see much lower levels on this scrip. If Ranbaxy closes below the 5 day EMA, a short term reversal can be expected, and such a downmove will be violated only on a close above the recent high of 532.40. So above 532.40 we have a target of 570, and on a close below 5 day EMA we may see 445 - 425 range. My bets are on a fall in prices.
hi aniruddha,
ReplyDeletei have the same count on ranbaxy, but the c leg has 3 waves so far, i am expecting one more move to 550 before it tops out as X
regards
vikram