Axis on a steep decline down to last leg of correction

I had previously posted how certain key stocks are tracing a triangle in Elliott fourth wave.

The list is unending....All key stocks including Reliance, HDFC, HDFC Bank, ICICI bank, Kotak and Axis are tracing a triangular pattern. Even, BANKNIFTY, NIFTY and NIFTY NEXT 50 are tracing one. Yet, financial media is super dumb and will not talk about any of this. Some analyst will be talking about NIFTY forming a candle pattern and that is what media will write home about...!!

A triangle typically has five legs, four of which have been completed already and the stocks are running the last leg now. Usually, one leg of the triangle is complex and uses up lot of time. In this case, you'll find that wave (c) is so complex and used up most time. In fact, wave (c) was hard to decipher in real-time and quite misleading that I thought it was going to be a different pattern.

Triangles imply two things. Firstly, after the wave (e) of triangle completes, the stock or index will rise up insanely, as if it just got freed up from months long shackles (from 16-Feb, to be exact). That's a good opportunity to go long. The next implication is perhaps more ominous. It implies that the previous trend has only one last leg still left. Which brings me to conclude that we will be witnessing the last leg of the bull wave, which started a year ago in Mar'20. The markets will hit the peak in July or Aug (2021) and then we will witness a considerable decline leading to a sideways market for months and months to come. So, it will be a good time to sell off all equity and just trade only options (if you knew how to play a bear market). Do mark my words and check after three or four months.


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