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Sunday, 29 March 2015

ANALYZING CHARTS

                         Chart Of IDFC.

Shown above is the daily chart of IDFC as on 27-03-2015. The labels marked on the chart do bear great significance. First, you can see the double top formation at approximately levels of 165 which was breached by it resulting a quick upsurge in the stock. The stock took support from approx. 165 levels (which was previously a double top) forming a triple bottom. On 26-03-2015, as on Thursday's trading session the stock breached its strong support of 165 but failed to sustain below it and in the following trading session managed to give s close above 165 indicating strength correspondence to the volume action resulting in break down failure. Now, if we go by the Elliot wave counts, it is clearly indicating the completion of an expanded flat A-B-C correction. Therefore, I am expecting the stock to gear up for 185 plus level but it would be safer to take a position after the stock breaches levels of  169.5 and should maintain a strict stop loss below 159.

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