EW & Candles: Follow-up on Mundra Port

On Friday,I had put up this ostensibly Bullish Engulfing Candle chart of Mundra Port and after

seeing it in EW microscope

commented:

Q

Thus there seems to be no more space for further upmove as a 3 wave zig-zag is nearing completion.

UnQ

And see what happened today--- though Nifty moved up by 150 points,this stock barely moved.

Although the main purpose of this blog-post was to illustrate how EW can help in confirming or negating the indications given by Candles, it would remain incomplete without answering the "natural query" -- Should it be shorted then?

Yesterday I had given the answer-"YES with a SL @129" and proceeded to give following count as the "reason":

Q

So it clarifies that the upmove noticed on Friday was a sw4 of the downmove( 5 wave) started from 139.8 on 18.11.2011. Making the count as:

UnQ

But today I would not be that categorical as market prudence in view of huge upward momentum as well as the extended 3rd wave(325% of 1st) suggest that the "ideal" 5th wave may not occur at all at such a small degree(compensated by hugely extended 3rd.

-Then what should be done?

On hourly charts this abovementioned Count looks like:

And the count now becomes:

139.8-132.55=7.25

132.55-139=6.45

139-115.4=23.6(325%)

115.4-127.4*=12( 50.8%)--as a 3 wave form.

Thus this 115.4-127.4=12 has retraced more than 50% of its prev wave. A bit incongruent as its retracing more than 38.2% was difficult. Also its internal fractals now suggest (pl see chart above) that going above 128.8 would mean its turning into a 5 wave.

So all shorts to have a SL at 128.85 and one should go long above 129.

Very detailed explanation has left me exhausted so more of it on some other occasion.

Good Nite.

Raghu