Metals Stock: Are they entering wave 3 now

The metal stocks seem to be headed in Wave III now.

The likes of SAIL, JSWSTEEL and STER seem to be entering into Wave III upmove.

Following are the wave counts:

These studies are based on technical analysis and the author nor the webpage shall be responsible for the profits or losses. The author may or may not have personal holding. We are all students

Indian Metal Stocks: Nalco, Hindalco, Ster, Sesa, SAIL

NALCO:
Short Term: Possible Cup and Handle - Bullish possible post breakout above 408.

Current Price: 401.85
Stop Loss: 396
Target 426

Medium Term: Flag breakdown
Action: Short
Stop Loss: 427 level
Target: 300

Chart:

HINDALCO:
Rs. 185 is invalidation point for this wave count. break above 185 can take tha share to 200+ level.
Based on my preferred count. we are looking at completing wave 2 for Hindalco. Break of rising trendline (TL-1) shall be bearish for stock. In that case, stock shall be intermediate wave 3. But, i am keeping targets on hold, until the TL-1 is broken/ There is good evening star on Hindalco, marked in YELLOW BOX, this is bearish structure.

Chart:

Sterlite
Oh my my, I am seeing this stock after so many day. It has perfectly adhereed to wave count and now is moving to wave 5 down. The immediate target for STER is 140. The medium term target for wave 5 is approx 120. This old chart of Ster, which I had posted in Apr 2010, when i had called for wave 2 top for Ster and well this has been the case till now. Stock has now completed wave 3 and wave 4 and headed for wave 5.

 SAIL:
A similar story on sail. Same day I had called for wave 2 top on Sail. the price of sail then was 228, from that point in Apr 2010, SAIL had dropped to 185, which was end of wave 3. However, I cannot consider consolidation in May to Jul as wave 4, cause Wave 4 cannot enter into territory of wave 1. As of now, I am naming this formation as ABCXand ABC pending. There is a bearish Flag breakdown on SAIL with a target of Rs, 150. This is a good support zone for SAIL. A stoploss for this position (short) can be considered at Rs. 201. The current price of SAIL is 190.

SesaGoa:
Completion of 5 impulsive wave up to complete upmove in a Cycle wave. In fact, this stock is now actually starting its bearish waves, with start of Primary wave A. The bare minimum retracement for Sesa I am looking at is up to end of Primary wave 4, which would be in the range of Rs. 50 to 100. This is gonna turn heads as the stock is now at Rs 350, and anyone will say this guy is nuts and loves giving absurd target, but then that i view.

Long Term Sesa Goa:

 Shorter Term Chart:
The bracket marked in yellow is a Head and Shoulder strucuture, which has broken. The target of HnS is Rs. 287 with a Stop loss of sell of Rs. 340.

These studies are based on technical analysis and the author nor the webpage shall be responsible for the profits or losses. The author may or may not have personal holding. We are all students

Metal Focus: Copper, STER, SAIL, JSW

In the following post discuss charts with focus on metals.

Firstly, the major metal chart:
1. Copper:
Copper is making divergence of chart. It would be hasty to call a top on copper, but a short tern rising trendline (1) is been broken.  However, line (2) is a major support line. Sub 340, major bearishness shall creep in the commodity. As of now, i see, copper making a topping structure. I am not able to fix up wave count, but would advise caution over longs in copper.

Follwing is EOD chart of Copper:

Coming down to metal stocks:

The following stocks are focussed on:
1. Sterlite
2. SAIL
3. JSW Steel

Sterlite (CMP 837)
The stocks seems to have completed wave 2 upside and is poised for downside of wave 3 been in the range of Rs. 560.

Have posted comments on chart. For any short, i would consider a stop loss of 871. But, until new high is made on Sterlite, i would have a bearish outlook on Sterlite.

Plus, with copper making or been in a topping process, the stock is poised for major downside.


2. SAIL:

Following chart of SAIL is pretty self explanatory. I have posted my commnets.

On EOD basis the stock is bearish. On intraday basis, the stock can give bit of upside.

EOD Bearish target: 150 Current price 228

Intraday short of bull case: target 239

Bear case, target 214

Refer chart for comments:

EOD SAIL

SAIL Intrday 60 min chart:

JSW Steel (cmp: 1288)
JSW Steel is a gravity defying stock. i would say there is a major rising wedge on stock.
Breaking FW(2) line wil be bearish for the stock with Price target in range of Rs. 600. I would not say it will break in this week or not. But, if FW (2) breaks, then targets of Rs. 600 are possible.


JSW Weekly chart:

Disclaimer: The above is my analysis of stocks and not any recommendation. These are my studies and based on which i take my own trading decisions, Nothing above should be construed as trading advice.
Use your own stoploss, protect ur capital else u r screwed.

Metals: Still a Time To Shine

The Wave View: I am labelling the wave structure under ABC scenario for now, since the move is more sideways rather than impulsive.
I consider TATASTEEL to be in wave Y of Double Combination, having its internals as ZigZag, with A completing 5 waves at Oct 2009 at e:585, and now moving in wave C.

Under one of my count, I consider to be making an Extended wave C / 3 where, where are completing wave (iv) on 13 jan 2010, thus moving t wave (v) which can reach to Rs. 700. That would complete wave c / 3 and then one small blip to Rs. 660 levels to complete wave d / 4 and move higher to Rs. 730 to 750. Now, I am giving very broad levels, since, market tends to do its own rather than mine :)

However, considering this is not an Extended Wave for wave c / 3 then we are ready to move last leg been wave e. This is also plausible, since considering that fact that Wave A in wave Y did not have such extention. In that case we could then have a high in the range of Rs. 700 to 720.

Tatasteel:

 SAIL:
Intraday Bouce: Inverted Head and Shoulde - Time Frame 30 minutes

I was rather bearish on SAIL based on my post SAIL: Cup and Handle however, this pattern has been voilated, and there is an Inverted Head & Shoulder. Based on inverse Head and Shoulder the target of stock works out to 250. The current price is Rs. 242 and neckline is Rs. 240. For any one initiation long position, the stop loss can be Rs. 237. The risk:reward ratio is not that favourable, however, i woul not rule out, the stock going more than Rs. 250 with max of Rs. 255 is possible. The range of Rs. 244-246 seems a good resistance for stock.

Chart attached with levels:

STER:
The wave structure, still suggest good upside, with support still held on trendline 1, which connects all major wave point lows and can target trendline 2 which is connecting major wave top. As long as trendline 1 is held on closing basis, i would expect the stock to reach trendline 2 on upside with targets of Rs. 1000 from current price of Rs. 826. The stop loss would be difficult to tell, one could have it as breach of Trendline 1 on closing basis. Rs. 800 seems to be a good support for long. I would prefer cash long on stocks rather than derivatives. The following is wave chart attached for STER

Based on above wave count, it seems we are in last leg up. We are in a double combination structure for now, based on which as on long as trendline 1 is held, we can even move to Triple Combination. However, for now, upside seems capped only to Double Combination with high possible to Rs. 900-950-1000.

The weekly charts of Ster (similar to many stock charts) show, rising wedge, with declining volumes and negative divergence.

STER WEEKLY:

Sesagoa: Refer Chart, CMP 404, as long as trendline 2 is held, target works to 430(resistance line) - 450 - 480 (trend line 1).

 If these metals stocks are for upswing, then midcap metals would do rather better i guess. Adhunik Metaliks (CMP 120 made an inverted hammer at resistance of Rs. 120, and on upside can suggest a Rectangle sort breakout which can take the stock to Rs. 160. Attached charts with possible target zones.

 Bottom Line: Most of metal stocks have bounced off their rising trendline yesterday. That is rather a bullish case. As long as this trendline is held, the target shall be higher for the metal stocks, and i think we still have some shine left. If one is to look at Nifty EOD chart, there is rather alarming Cup and Handle Structure, which itsef can make Nifty reach 5400+ zone. However, i would not be rather adamant on target. Have a trailing stop loss, and trade.

The above studies are based on Technical Analysis, these are not trading ideas. One should take own decision, always use stoploss