Jindal Steel and Power (JNSP) can Bounce above 135 in Near Term

| April 20, 2017 | 0 Comments

Jindal Steel and Power (JNSP) stock is indicating a interesting Irregular Correction pattern at the end and giving a good trading opportunity for quick gains with low risk. So, today I am posting Elliott wave analysis of JNSP to explain the opportunity and pattern.

Let’s have casual look at long term chart (monthly chart) of Jindal Steel and Power before analysis.

Elliott wave analysis of Jindal steel and Power (JNSP)

Elliott wave analysis of Jindal steel and Power (JNSP)

This is monthly time bar chart of Jindal Steel and Power (JNSP) to show the all time move of this stock. This stock bounced to touch all time high 796 in 2010 but crashed near all time low to register 48.10 and bounced a little from low.

I am not showing any wave counts on this chart because it is trading near all time low but there is Irregular Correction pattern at the end within the bounce from low.

So, I am analyzing the bounce after low 48.10 on separate daily chart.

Elliott wave analysis of Jindal steel and Power (JNSP)

Elliott wave analysis of Jindal steel and Power (JNSP)

This is daily chart of JNSP covering bounce after 48.10. This stock bounced from 48.10 to 135 and there is possibility of Irregular Correction pattern at top.

Overall pattern of the bounce is not clear but the steep bounce from 62 to 135 is indicating that it is some type of wave (3) or inner wave (iii) of (3).

And if wave (3) or (iii) completed at 132 then Irregular Correction at end must be wave (4) or (iv). And we can expect wave (5) or (v) for new high above 135 again.

38% retracement of wave (3) or (iii) is at 105 which we can refer as stoploss of longs. And this stock has possibility to bounce again above 135 from 109-105 range.

Consclusion and Trading Strategy

This Irregular Pattern at the end is indicating a bounce above 135 again and 105 is the point we can use as stoploss. So, any decline in 109-105 range can be bought using stoploss of 103.95 (2 points below 105) for minimum target 135 and above.

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Category: Stocks Analysis

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