9 Sep 2020 ● 02:22 PM
Value Wave Investment - Long term Wave counts discussion
Indian Hotels after a long time. But the stock was already in the Value wave investments in 2013. Then I stopped coverage as it stoped doing anything and I was waiting for wave 2 down to complete. On this Quarterly chart you see wave 2 down done at the trenline of the lows from the 2001 bottom. So what I think is happening here is we are starting a long term 3rd wave. Note short term the stock is still in a correction and did fall to the 40dema support. Not sure how much time it will spend in consolidation after all the sector is facing headwinds. But the lock down is not forever. So as wave 3 slowly unfolds we should consider the odds of going past the multiple highs at 173. In fact since 1996 the stock has been in a broad range with many ups and down. Now with some changes in its business [as I am told by a bird], who knows, a larger degree trend can unfold. It can be 3rd wave of something that started in 2013. As history has it, stocks that do not perform in one cycle and are making a base do so in the next. So the time may have come. If I draw a long term channel around prices then it would go all the way to 2500-3000 depending on how much time it takes. No the top end of such a channel is not required. Even a more conservative channel of the 2001-2020 lows is at above 700.