Monday, August 26, 2013

NMDC - Buy


NMDC (CMP: 116.7) The daily chart shows the medium term falling leg. On the Elliott wave perspective, a-b-c structure is progressing. Wave b has ended and now we are in Wave c for the target of 131 – 139 – 145 levels which is 100% - 138.2% - 161.8% extension level of wave a & wave b. 

And an addition, the stock has given a falling trend line break out with strong positive candle as well as the stock is trading above 50 Day EMA which signifies bulls are active in the market. On the daily chart, RSI shows multiple leg of positive divergence which shows bullish reversal.


Recommendation: Traders can buy at CMP or buy on dips to 113 – 105 levels with a stop loss of 101 (closing basis) for the target of 139 - 145 levels.

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