BHEL - Elliott Wave Analysis Application : Expanding Wedge

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WaveTalks - Market Whispers: Can you hear them?

Elliott Wave Analysis Insight

BHEL's stock movement is currently showcasing an expanding wedge or ending diagonal pattern, often seen in the final phases of a trend, such as the fifth wave or wave -C in Elliott Wave Analysis. This pattern indicates we're possibly at a critical juncture.

Today's High and Implications

Today, BHEL hit a peak at 234.45, a significant level under Elliott Wave Analysis. This point is crucial because it tests the cardinal rule that Wave 3 must not be the shortest, and Wave 3 should be equal to or greater than either Wave 1 or Wave 5. In current BHEL's case, Wave 1 surpasses Wave 3, creating a unique situation. The stock's movement above 234.45 or 235 could mean Wave 5 will also exceed Wave 3, violating the cardinal rule of Elliott wave analysis, which is not allowed.

Technical Indicators and Outlook

The RSI shows a negative divergence, indicating the recent rise to 234/235 might not have strong momentum behind it. This divergence suggests caution.

What's Next for BHEL?

If BHEL remains below the 235 resistance, we might see a retracement to 200, a key support level. A fall below 200 could lead to a further drop to 165.80, which would be critical to watch.


BHEL's stock is at a pivotal point, with Elliott Wave Analysis providing a unique lens to anticipate future movements. While the resistance at 235 is vital, the underlying momentum indicators suggest a potential pullback. Investors and analysts should keep a close eye on these levels for future direction.

WaveTalks... Market Whispers... Can you hear them?
11:19 am / 5th Feb 2024

Last @ 238.25

It remains uncertain, even though it has already dropped to 223.20 after the idea was published. Risk management is crucial. We should wait for a trigger below 230. Despite currently trading at 238, it might be wise to avoid this stock for the next few days, even though it has surpassed 235.
Trade closed manually:
6:21 am / 10th Feb 2024

Last @ 227

Good Morning All,

There was a sudden fall on Friday , 9th Feb 2024 - Stock slipped from 235 to intraday lows of 217 & bounced upside

So be careful as pattern unfolds out of expectation we still expect re-test of current highs & even new highs above 243.25 holding above 217 -220 zone which will be key zone for next few days

Best Regards,
Abhishek H. Singh
​Growth Director - TradingView India

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