NALCO

Value Wave Investment

This is one of the laggards in Metals. National Aluminium also has a difficult wave count. This is the best I could come up with logically for a bullish outcome. The entire base formation from March to June is taken as a triangle and marked as A-B-C-D-E. Wave E of the triangle is truncated, meaning that it did not touch the lower line of the triangle. After that I have mared wave 1 and 2, where wave 2 is a running flat, where wave b goes above 1 and wave c of 2 is a higher bottom than wave a. So the correction is upward slandting. Now wave 3 should start from the low of 32. Either 3=1 [near 41] or wave 3 is extended. As considered in the Metals index an extention can go back to the Jan swing high which in case of Nalco would be at 48.