BHEL - Elliott Wave Analysis Application : Expanding Wedge
Disclaimer:
Trading in financial markets involves substantial risks. Consult your financial advisor before making decisions. This commentary is not a solicitation to buy or sell.
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.
Conclusion
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?
Trading in financial markets involves substantial risks. Consult your financial advisor before making decisions. This commentary is not a solicitation to buy or sell.
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.
Conclusion
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?
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
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
YouTube Channel www.youtube.com/channel/UCYcnYveYBNLD-Qp54hvZogw
Twitter Handle
twitter.com/TalksWave
Telegram Handle
(Deleted)
Abhishek H. Singh
Growth Director - TradingView India
YouTube Channel www.youtube.com/channel/UCYcnYveYBNLD-Qp54hvZogw
Twitter Handle
twitter.com/TalksWave
Telegram Handle
(Deleted)
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.