BHEL – Approaching a Key Reversal Zone on the Weekly Chart

BHEL has been in a broader W–X–Y corrective structure since topping out near ₹335 on the weekly timeframe. The first leg down (Wave W) completed around ₹176, followed by a steady recovery that is now pushing into a major resistance zone.

The current bounce looks like the tail end of Wave X, with price entering the 100% extension area of (a) near ₹301. This is a natural place where counter-trend rallies often slow down or fully exhaust.

Momentum remains strong — weekly RSI is pushing into the overbought zone — but there is still no confirmed bearish divergence. In simple terms:
strength is there, but it’s reaching the “watch carefully” zone.

If a bearish candlestick forms inside this highlighted region (shooting star, rejection wick, bearish engulfing, anything with real intent), it could mark the start of Wave Y, potentially dragging the stock much lower over the coming months.

Volume is supportive on the way up, but still not showing the kind of impulsive conviction that usually accompanies a fresh bullish trend.

For now, the plan is straightforward:
Let the weekly candle speak. If sellers step in here, Wave Y may begin. If price breaks above the zone decisively, this count gets challenged.

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.