Daily Archives: December 3, 2015

EW & Gann Analysis: SBI could test 228 and then may be 220

As per Gann and Elliott Wave Analysis on SBI , it may first reach 228, first , based on AB= CD pattern. lower it can reach 220. 221 is also the previous swing low of sept fall. Lets see, what happens.

Also, in the smaller AB=CD, if the pattern is actually AB= Wave 1 or A, BC=Wave2 or B, then we may see a Impulsive 3 or C, in the form of CD.

The AB if you see has fallen in 5 waves , which on larger scale is wave 1 or A, and the upside of bigger BC= Wave 2 or B , then bigger C or 3 Could also unfold which could take it to below 200 levels. But I am not considering this case unless there is a close below 220 levels.

There is also a bigger AB = CD , that can take it below 200. However, right now expecting it to hold the 220 levels.

As per Gann Analysis, SBI will also be in downtrend till mid December. Also, the fall might have got triggered coz of Sun Saturn conjunction. Last time Sun Saturn Square in August brought the fall in the market.

SBIN - Alternate 2 - Dec-03 2128 PM (1 day)

Also Read :

EW & Gann Analysis: Reliance Power about to complete its 5th of 5th of 5th and merged with Gann Cycles

EW & Gann Analysis: Reliance Power about to complete its 5th of 5th of 5th and merged with Gann Cycles 1

As per Elliott Wave Reliance Power is about to complete or may have already completed its final phase of the impulse and as Per Gann the down Cycle unfold and stock may be ready to join the fall with the all others.

Price structure at the top looks shows Ending Diagonal Pattern unfolding with the Resistance already existing. I have merged the EW with the Gann Cycle. The Gann Cycle of the Reliance Power may do the rest at present 47 and 45 levels look probable targets. @ 38% and 50% retracements. they will shift a bit depending on if the swing top is marked a bit higher.

RPOWER - Alternate 1 - Dec-03 1609 PM (6 hour)


But I will tell you how could have Gann traded in the same move without using any Elliott waves. Gann had his own device known as “Mechanical Trend Indicator”. How he used it was he used to record the average of all the ups and average of all the downs. And as you know in Elliott waves the Pattern Ends with the Ending Diagonals, where the the moves become smaller. These smaller moves could have given Gann an idea that there is change in the sentiments. and obviously he had his price calculators such as square of 9 and planet lines which gave the targets without using any fibonacci ratios , while he was actully using retracements like 33% and 50%, 75% etc. And obviously he knew which cycle in the stock is functional, so he got the idea of the direction. And above all his money management and trading rules were at first place to save him from any adverse trade.