Monday, May 18, 2009

Long Term Investors - Maharashtra Seamless



The above monthly chart shows one major Motive Wave is complete From the low of Rs 8 to the historical high of Rs 675 which as marked as wave [ i ]. From the historical high to the higher bottom of Rs 111.80 is marked as wave [ii]. Wave [ii] is a-b-c three wave corrective structures. Wave [ii] is retraced 85% of wave [i]. Now we are traveling in the internals of wave [iii]. In long term perspective, Wave [iii] is retraced 161.8% of wave [i]. The retracement level is placed at Rs 1186.
Support level is at Rs 164 – Rs 140 – Rs 111. If the important support level of Rs 111 is violated and then the stock fall towards Rs 90 – Rs 52 – Rs 23 range.

Resistance level is at Rs 221. If the price rise and close above Rs 221 and then the stock rise towards Rs 245 which is the 23.6% retracement level of wave [ii]. On further sustained rise and close above Rs 245 and we can expect the stock rise towards 38.2% - 50% - 61.8% retracement level of wave [ii]. The retracement levels are placed at Rs 326 – Rs 393 – Rs 465.

Strategy:
Long Term Investors can buy on corrective dip to Rs 164 –Rs 140 – Rs 111range as the opportunity arises.

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