Hero Motocorp 2-8-13

Overall market is very negative & none of stocks showing great uptrend but still there are some stocks which are moving upward like Hero motocorp

If we go through daily chart of Hero motor, we find that Hero motor started its uptrend from 1438 by forming engulfing candle.

By using peaks & troughs analysis, it is clearly showing higher top & higher bottom formation at 1800 & 1563 respectively. If we use Elliot wave theory  here, we get wave 1 at higher top(1800) & wave 2 at higher bottom(1563). Wave 3 is always larger than wave 1 so we can have next target near 2000 & surprisingly it comes in Fibonacci ratios too.

RSI is also confirming the uptrend which is at 58, it is going with price

Volume is at low in recent correction which is bullish characteristic.

It has crossed its long term moving average (200 days) in current uptrend, Heromotor has tested 200 days moving average more than 5 times in last one year but this time it has managed to cross it which is very bullish sign

Its good opportunity to go long in Heromotor for target of 2000 with strict stop loss below its 200 day moving average which is currently at 1730

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