I had written about my perceptions on DLF in my post DLF: In a Corrective on 06 March 2013 with an update on 27 March 2013. The subsequent price action has developed as perceived in one of the possibilities. Now since DLF is approaching the limits of this move, a fresh looks is necessary. The chart below gives a comparison of the chart posted on 27 March 2013 with the chart of 14 June 2013.
As evident from the chart above, the price action is contained in the red APF and is reaching the LTL of green APF (which is drawn in anticipation), which should provide the support, if DLF had to rise from here. With last low at 169.75, it looks fairly lucrative for initiating a long position near the green LT (roughly 180) with a SL below the last low.
The chart below is a weekly chart and shows a broader outlook of the stock. To me, critical areas are the cross of two blue TLs and the price action has gone below it. the other critical area is the lower amber zone followed by the red zone. While I expect the amber zone to be tested with a reclaim above blue TLs, I do not expect the red zone to be breached. If red zone is held, the targets could be as shown with the hollow green arrows or more. If the red zone is breached, the next support zone is 162 - 160 and may be further down to make a new low below 124. The likely path is shown with pink lines. Not to forget that the lower thick black TL is likely to be ultimate support near these levels and as long as it is intact, the bulls will have a decent opportunity for a rise, which may go to as much as 520+, but a realistic target of 290 should suffice for the time being.
EW wise, an alternate count indicates that the current fall may be restricted till 176.65. Below this, 169.75 and 162 are the support levels that may be of importance.
Readers may choose their strategies accordingly. Remember to keep the SLs tight.
As evident from the chart above, the price action is contained in the red APF and is reaching the LTL of green APF (which is drawn in anticipation), which should provide the support, if DLF had to rise from here. With last low at 169.75, it looks fairly lucrative for initiating a long position near the green LT (roughly 180) with a SL below the last low.
The chart below is a weekly chart and shows a broader outlook of the stock. To me, critical areas are the cross of two blue TLs and the price action has gone below it. the other critical area is the lower amber zone followed by the red zone. While I expect the amber zone to be tested with a reclaim above blue TLs, I do not expect the red zone to be breached. If red zone is held, the targets could be as shown with the hollow green arrows or more. If the red zone is breached, the next support zone is 162 - 160 and may be further down to make a new low below 124. The likely path is shown with pink lines. Not to forget that the lower thick black TL is likely to be ultimate support near these levels and as long as it is intact, the bulls will have a decent opportunity for a rise, which may go to as much as 520+, but a realistic target of 290 should suffice for the time being.
Readers may choose their strategies accordingly. Remember to keep the SLs tight.
THANK YOU VERY MUCH
ReplyDeleteCan be bought now below 162.4 with SL 160.
ReplyDelete