Skip to main content

JetAirways: Complex Correction

Jet Airways, one of India's leading and biggest domestic airline companies, providing it services domestically as well as internationally, had came out with an Initial Public Offerings through book-building process way back in February, 2005. The ipo was subscribed by 16.2 times as compared to 17.27 millions shares that were offered for subscription. The ipo price was fixed at 1100 whereby the price range for the ipo was 950-1125.

The stock of Jet Airways got listed and started trading on BSE & NSE, India's leading stock exchanges, on and from 14th March, 2005. The stock opened at the price of 1155 being the low for the rest of the day, went to the high of 1338.90 and got settled/closed at the price of 1304.20 per share on NSE on the listing date. The stock made its all-time high of 1382.75 on 26th April, 2005 and still the same has not been breached after that. Moreover, the stock breached its issue price of 1100 on 21st September, 2005 and traded in the range of 970-1125 over the next 5-6 months. On 23rd January, 2006, the stock price of Jet Airways went down its issue price for not looking back it again and made an all time low of 115.20 on 12th March, 2009. More than eleven years have passed by, after the breach of the level of 1100, and stock is still trying it hard to find the way back to and above its issue price.

There are many reasons, on micro and macro level, behind the stock showing poor performance. Accute competition, under developed and niche market, price war among the players, high ATF (air turbine fuel) prices due to high crude oil prices and government control, etc., are some of the reasons behind the poor earning performance resulting in lower stock prices.

Below shared is the weekly chart of Jet Airways showing movement from and after November, 2006. The stock of Jet Airways, after making its all-time low price of 115.20 on 12th March, 2009, began to rise and made a high of 925.65 on 10th November, 2010. After that, the stock saw southward movement once again, though the all-time low price of 115.20 still remains intact and protected, and has been trading in the range of 166-926 since November, 2010.


As it has been shown in the chart above, the movement from the low of 115.20 to the high of 925.65 in the stock of Jet Airways, at first look, looks like an impulsive run. The stock of Jet Airways, after witnessing high of 925.65, has seen multiple new 52 week highs and lows, though keeping the low price of 115.20 and high price of 925.65 intact from breaching. The movement in the stock of Jet Airways, as shown in the chart, seems to be more of complex correction in nature than any other sort of corrective pattern.

The stock is probably forming a Triple-zigzag complex corrective pattern (WXYXZ), and the same may get completed anytime soon with the completion of the wave 'Z', as the first four legs of this complex corrective pattern, i.e., W, X, Y & X, had already been completed. The point or the price for the completion of the wave 'Z' comes around 250.

For regular updates on this post and other past posts, follow me on twitter.

Disclamer:

All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade nor does it or the publisher of it guarantee any sort of return or the correctness of the post or any materials.

Undertake proper research and advice of your investment consultant before taking any trade.

Trade at your own risk.

Follow me on Twitter : @beta_trade

Popular posts from this blog

Nifty : Bulls & Bears, Who Rides On What?

"Nifty : Bulls & Bears, Who Rides On What?" Well, the discussion on this issue can be an endless. However, the importance and the very existence of both makes the market more reliable and provides an endless opportunities for both buyers and sellers. And I think there is no doubt about it and everyone agrees on it unanimously. Above is Nifty's chart on daily time scale, showing move from 6825.80 to 9450.65. I have tried to simplify and put forth my point of views as far as possible and also have put up some notes in chart as well. Below are some of my observations, that I would like to put forth the readers: (i) The move from 6825.80 to 8968.70 in Nifty looks to be a leading diagonal formation. A leading diagonal can be wave 1 of impusive run or wave A of corrective pattern A-B-C. (ii) The total fall in Nifty from 8968.70 to 7893.80 was 50% of its total rise from 6825.80 to 8968.70 in simple A-B-C formation. (iii) The rise in Nifty, from the...

DHFL: Sell Or Short @354 Target @325 SL @365

Dear Readers, A divergence on daily basis has been witnessed in the stock of DHFL, whereby the current price is higher than the previous top, while the current MACD of new top is lesser than previous top, please refer to the chart for the same. It is expected that the resistance line drawn on the MACD indicator would not get crossed as well as the upper resistance line drawn on the price chart will not get touched or breached. The price for the upper resistance line, in continuation of the current trend until tomorrow, comes around 364. It is expected that the stock would witness a sharp fall in next 3-4 working days and the start point price of the current last leg of the wave, i.e., 324.55 will get touched at first in the expected fall. Disclamer : All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade not does it or the publishe...

Bank Of Baroda : Sell/Short @166-166 Target 160-157-153 SL 170

Dear Rearders, As shown in the chart, the stock of BankBaroda is breaching the lower support line of the channel line drawn. Secondly, the stock seems to be in corrective zone having completed its corrective wave '(a)' @169.65 of its possible 'flat' type correction. Considering the same the possible irregular '(b)' may get extended beyond the start of wave '(a)'. It looks good to sell or go short in the stock @165-166 with an ultimate target of 153 being 138% retracement of wave '(a)' with stop loss of 170. Disclamer : All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade not does it or the publisher of it guarantee any sort of return or the correctness of the post or any materials. Trade at your own risk. Undertake proper research before any trade.