Short Term Trading Member Forum

[techcharter]

Bombay Stock Exchange E-Wave

The pattern that jumps out at first glance is a zigzag that started in December 2011.

December 2011 low to February 2012 high ZIG was 5 waves (motive).
February 2012 high to June 2012 low was 3 waves (corrective).
June 2012 low until present ZAG should be 5 waves (motive); however, the zag has had 4 overlapping sub waves which are zigzags. This is a huge signal that the zag is an ending diagonal. Wave 4 is still in progress, bottoming in about a week. I'm guessing wave 5 will top out around the beginning of October.

Also look at the RSI negative divergence as confirmation of the topping process. I'm looking for the RSI to be stronger at the end of wave 3 than at the end of wave 5.

http://stockcharts.com/h-sc/ui?s=$BSE&p=D&yr=2&mn=0&dy=0&id=p23776160475