Capital First Limited (CAPF) can achieve 464-551 without breaking below 320, CMP 359

| February 28, 2016

I was looking at charts of Stocks and found chart of this stock “Capital First Limited” (CAPF) interesting in a clear pattern. This stock is currently trading at 359. The Elliott Wave Pattern on chart seems quite clear with easy identification of waves, patterns and convincing Fibonacci Calculation. Let’s start from monthly chart.

Elliott Wave Analysis of Capital First Limited (CAPF)

Elliott Wave Analysis of Capital First Limited (CAPF)

This is monthly time bar chart of CAPF covering its life time move. This stock listed at 1081 in 2008 and declined sharply from there and achieved its all time low of 91 in 2011.

This question is asked by many of my “Book Subscribers” that from where to start wave counts if any scripts break its life time low. So answer is,

Wave counts or Long Term wave’s counts always start from all time low. If any stock breaks its life time low then all previous move became valueless. And we need to wait for a small impulse upside to start new counts. The same way, EWT life cycle of this stock (Capital First Ltd) started in 2011 from 91. So, let me show you wave counts of CAPF from 91 on weekly chart.

Elliott Wave Analysis of Capital First Limited (CAPF)

Elliott Wave Analysis of Capital First Limited (CAPF)

This is weekly time bar chart of CAPF covering move from life time low 91. It seems wave (3) completed at 464 followed by wave (4) completed at 321.

Wave (4) looks a Simple Zigzag correction which retraced exactly 38% if calculated from all time low 91. Whereas it retraced bit more than 38% if calculated with respect of wave (3) only.

If wave (4) really completed at 321 then wave (5) needs to project minimum 38%-61% which is placed at 464-551.

The whole pattern will be negated if this stock breaks below 321 again.

Conclusion:

After analyzing its chart, Capital First Limited (CAPF) have possibility to bounce minimum till 464-551 in coming weeks or months (CMP 359), exact time frame cannot be calculated. The whole pattern will be negated if this stock breaks below 321 again.

So, medium term trading/investment strategy must be to buy this stock on every decline with Strict Stoploss of 320 expecting minimum targets 464-551 in coming weeks/months (CMP 359).

This analysis report and outlook is purely based on Elliott Wave Theory analysis based on my own understanding without counting any other technical or fundamental aspects. Any trade or investment decision based on this analysis reports will be one’s own decision and I will not be responsible for any trade, profit or loss.

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Category: Stocks

About the Author ()

Deepak Kumar is an independent Technical Analyst, regular practitioner and Trainer of Elliott wave theory applying Elliott's Wave Principles on Indian Markets successfully since 2011 and made many accurate predictions. He is also the author of book "Practical Application of Elliott's Wave Principles by Deepak Kumar"