Ranbaxy 26 January 2014 : A likely shake-off in progress.

I had last written on Ranbaxy at Ranbaxy 29 Jul 2013 : Broken Down.  Ranbaxy breached back into APF and rose to 490 and fell.  This is how I see it as of now...on daily charts...

The daily chart shows three bullish wolfe waves.  These are shown and labeled in Black, blue and red colors. The base-lines of red and black are already breached and that of blue WW is probably still intact.

 EW wise this is how I see the probable fractals...I am expecting the fall to be shaping up as an ED.  The lowest point that I could figure out after catering for bonus, rights and splits is 76, which is an absolute barrier as I am counting start of a new upmove from there.  The rise finished at 660, which I am taking as end of 1. The next lowest is 133.1, which is taken as 2.A and next rise ended at 624, which I am taking as 2.B.  If the current fall is its C then it should fall below 133.1 and may ideally reach 97.  Possible fractal of the fall from 624 is shown in blue on the chart below.

Possible Trades: 

1.   Long near 300 with SL 300 for above 490.
2.   Long near 260 (if reaches) with SL 250 for above 490 and may be more as 3.3(???).
3.   Long near 133.1 or 97 or 76  with SL 75. for target above 660.
4.   Short near 500 with SL 501 for below 250 and ideally below 133.

As and when they come.


Update 25 February 2014


  
 The APFs  indicate the reason for the rise from 308.  The SFF indicates the likely zone for the correction to the rise.


The hourly showed a clear evening star.  But it would oblige the bears or not, is a million $ question.  A -ve divergence is also visible and makes the case stronger for the bears.