Metals Stocks take a Thrashing today. What is in Store?

Published: Fri, 09/28/18

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What is the importance of a Evening Star CandleStick pattern? If you want a quick run down Here is My Educational Piece - Evening Star Or go out and read Steve Nison's classic, Beyond Candlesticks to learn all about Japanese chart patterns.

So why is this the Topic of the day, I noted the pattern occur on the Dow and it was a small formation and went unnoticed by many but I thought it was important so I have included the insider posts on the Dow below.

The second thing to note is the sell off in Metal stocks today and at the start of August I thought that metals were ending an x wave, what you have now on the chart below is a larger X wave done. The rise is not impulsive and so the risk is on the downside.

If you Like Elliott Wave Videos then I publish these regularly to Indiacharts Insiders and this one is up on my YouTube channel, check it out.

Nifty Elliott wave Update

BSE Metals Index - 01/08

Good bounce in metals stocks and the BSE metals is near the upper end of the channel that should be an x wave and the next move lower should be starting from here today. From 12500 odd down to 11000 in wave z of Y is what we can expect it to do.

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Dow

Dow has followed up on the evening star and gone back inside the blue wedge pattern, most US indices have their daily momentum in sell mode. So high probability right now of marking wave 5 of 5 long term completed and more declines to follow in the days and weeks ahead.

dow
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Dow

The Dow formed a rare but not yet recognised Evening Doji Star. A candlestick pattern associated with market peaks and is rare. The amazing thing is that this one is small in size and therefore went unrecognised by Metastocks automated candlestick feature. But to my eyes it looks apt. The pattern involves a big candle up then a doji and a candle down. The next important thing is that the doji has a read body that does not touch the real body of the candles before and after it. The real body is the big fat part of any candle that is drawn from the open to close. The line above and below it is the high and low. So in this case the real body has gaps on both sides and that is an important requirement of a evening or morning star pattern. So as long as we are below the recent highs the trend should be down based on this. If you have read Candlesticks by Steve Nison one method of verification is that when you add the three candles together you get an inverted hammer. This is true here as the open and low were same on the first day and we closed significantly lower on the third day so it does form an inverted hammer.

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Rohit Srivastava
www.indiacharts.com
For accurate market forecasting. Market forecasting is a study of past data to assess
future probable outcomes. It is our endeavor to discuss high probability outcomes for
traders and investors. However this is not a solicitation to buy or sell stocks futures or
options or any security. Trading in any financial market should be done with sound
knowledge and the help of a qualified investment adviser. Stocks based on the Elliott
wave model are based on the Fibonacci fractal of the market and momentum indicators,
targets are based on Fibonacci maths and are only indicative of what the mathematical
model throws up. This is not a recommendation to buy/sell.
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