Tuesday, April 8, 2014

RCOM Closed above 200DMA - Need Follow Up?

On 7 Apr, RCOM closed above its 200DMA (131.90) with volume and needs follow up action on 9th. 
EW Counts (as per my limited knowledge): 
Option 1 - Wave 3 is subdividing and (iv) might have completed at 126.55.
Option 2 - Wave 3 is subdividing and (iv) might have completed at 126.35 (fall from 133.80 to 126.35 was in clear 3 waves). Rise from 126.35 to 133 (in 5 waves) to complete i of (v) and then fall from 133 to 126.55 (in 3 waves) to complete ii of (v). Currently iii of (v) is unfolding fro 126.55. 
If we observe wave (i) and (iii), both seems to be normal, so we can expect (v) wave to extend to complete 3.
At 142.50 (61.8% of the fall from 164.65 to 106.75), 3 wave may end and thereon correction starts as wave 4 for the rise from 112.75 to the high made be wave 3

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