US Stock - AK Steel holding Corporation

Couple of observations on AKS.

• The stock broke out from an inverse head and shoulders pattern and has fallen back to test the neckline again.
• Price is now touching the lower trend line of the channel shown in red. 

If the price holds up here, the chart has bullish implications. The probable count in red anticipates an impulse wave up, with nested 1-2 sequence. Target to be assessed as the wave progresses. 

Alternate count in blue suggests that the ongoing up move may just be a counter trend rally in a bearish larger trend. If so, one likely target for wave c is around 8.5. At that price, A will equal C and also the target for inverse head and shoulders pattern will be met.

AUD/INR - Long term chart showing perfect Fibonacci relationships

The monthly chart below for AUD/INR analyses the wave structure since the bottom made in April 2001. The currency pair is showing perfect Fibonacci relationship since then.

• Wave 2 retraced 61.8% of wave 1.
• Wave 3 completed at 161.8% extension of wave 0-1.
• Wave 4 may have completed at 50% retracement of  wave 3.

If the count shown are correct wave 5 is currently unfolding. The target for the same to be assessed as the move progresses.

Alternate possibility : It is possible that the wave labeled 3 in the above chart is actually a wave V of a higher degree, in which case the AUD/INR may have only completed first leg of correction and the downward trend will resume once counter trend rally is complete. This alternate count is shown in blue below. But till proven otherwise the count show in the chart above and also in red in chart below remains my preferred count. 

TASI - Saudi Tadawul All share Index

This is a short post on TASI. The following chart shows the up move since the index bottomed in January of this year. The chart is showing a clear five wave pattern since then. The down move that started in April after completion of the said 5 waves up, looks like a corrective pattern which may be nearing completion. If so the prices are likely to resume the uptrend any time now. More details are on the chart.