1 Sep 2020 ● 06:10 AM
Sugar prices are stable after some pullback. Sugar stocks are subject to market trends especially in midcaps. So we are seeing a correction that could be a further subdivision in the long term advance. The move in Balrampur Chini looks like an overlapping 5 waves also called a leading diagonal. In this case we get to mark this as wave 1 and 2 at larger degree. That does not mean that wave 2 has to be a deep correction. 23.6% at 143 is the first level to watch and 38.2% at 129 the second. The second is very close to the wave IV low and so that might be the worst case scenario. But we cannot know or expect it. All I know is that wave 2 down is bullish longer term as wave 3 may follow. The it is about waiting and letting wave 2 do its own thing.