SBI a Good Buy for Long Term at current Levels

State Bank of India (Click the image to enlarge)

SBI appears to have completed a 3 wave correction pattern or there is another possibility that it goes to 1900 levels to complete the correction.It may begin new uptrend very soon according to Elliot Wave theory.

Dollar Rupee Chart

Identify a triangle in the Dollar Rupee chart from Apr 2010 - Till date.

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Below is the descending triangle in Dollar Rupee chart.

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The triangle pattern tells that a big move is coming very soon as the triangle is ending.The prices will move out of this triangle and move rapidly in one direction because the compression always lead to expansion in stock market too. A descending triangle has the nature of breaking on the downside which means its highly probable but not for sure.

The other possibility is it breaks on the upside and remain in the range of 44-50 in coming time.