JSWSTEEL Elliott Wave Analysis, points to a coming correction

31 Agu 2016

There is a good chance that JSWSTEEL could see a sharp correction in the coming two trading sessions. We have probably finished the impulse that started around 800 and carried the price all the way to 1800. The other metal stocks also seem to suggest that they are over-heated. Moreover with the GDP data coming in lower than the previous quarter we could see a reaction tomm and that could lead to a sharp correction in the metal stocks. The current ABC pattern also points to an irregular correction. The move in the wave C is the sharpest and we are in the sub-wave iii of the larger C wave. This could be a very good trade with a stop loss just above 1810 level.