- November 23, 2011
- Posted by: Ramki Ramakrishnan
- Category: Inr
Elliott Wave Analysis of the Indian Rupee should be of interest to you even if you have no interest in this currency! EVery post in Wave Times seeks to give you an insight on how to use Elliott Wave analysis to your benefit. The ideas that I share with you can be applied across all asset classes and you should focus more on the chart than what the chart represents. Often times I have analysed charts of stocks without the faintest idea of what activity goes on in the company whoes stock chart I was studying.
The Indian Rupee has caught a lot of corporations on the wrong foot. They know what mistakes they have done this time (which, unfortunately, will be almost the same mistakes that others had done in the past). So I will not explain that here.
Elliott Wave analysis tells us that the Rupee has some resistance around 52.78/83. If we close above that, there is a good chance to reach 53.60 or even 54.55. BUt such a move will be a great opportunity to put on structures that will alleviate some of the pain that these corporations have undergone. The reason is such a move will represent the end of an extended fifth wave, and as I have illustatred in detail both in my book as well as in this blog, when we see the end of an extended fifth wave, we should be ready for a profitable trade! A swift correction back to near wave 2 of the extended fifth should follow.
If you are one of those who advise your clients having exposure to the Indian Rupee, then do him a favor and pass this to him. You can’t lose because you can blame me if it goes wrong, and claim some credit if it works out!