Structure Overview
From the lows of 402, CAMS has formed a clear 5-wave impulsive rally till 1073.50.
The strongest momentum expansion came near 982, where RSI entered overbought zone — this is being considered as Wave 3.
Price was respecting a broader upward trending channel (blue channel) during this entire advance.
After topping at 1073.50, the stock corrected sharply in an (a)(b)(c) pattern till 606.20.
The rise from 606.20 to 875 was overlapping and lacked impulsive strength. Hence, that move is considered as a Wave X connector, and not a fresh impulse.
Currently, price is falling again inside a downward sloping channel — possibly unfolding as Wave Y, with the final c leg likely in progress.
Key Support Cluster
The zone between 541 – 606 becomes very important due to multiple confluences:
This creates a strong support cluster region.
RSI Observation
RSI on the weekly timeframe is below the 50 midline and sloping downward, indicating weak momentum.
There is no bullish divergence yet.
A bullish divergence forming inside the 541–606 zone would significantly improve reversal probability.
Invalidation Level
402 is the major invalidation level.
A break below 402 would invalidate the current higher degree impulsive structure from the lows.
Trading Approach – What To Watch Near 541–606
The 541–606 zone is a reaction area.
When price reaches this support cluster, watch for:
If price breaks this zone with strong momentum and no divergence, the correction may extend further.
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.
From the lows of 402, CAMS has formed a clear 5-wave impulsive rally till 1073.50.
The strongest momentum expansion came near 982, where RSI entered overbought zone — this is being considered as Wave 3.
Price was respecting a broader upward trending channel (blue channel) during this entire advance.
After topping at 1073.50, the stock corrected sharply in an (a)(b)(c) pattern till 606.20.
The rise from 606.20 to 875 was overlapping and lacked impulsive strength. Hence, that move is considered as a Wave X connector, and not a fresh impulse.
Currently, price is falling again inside a downward sloping channel — possibly unfolding as Wave Y, with the final c leg likely in progress.
Key Support Cluster
The zone between 541 – 606 becomes very important due to multiple confluences:
- Previous demand area
- Lower boundary of larger rising channel
- 0.618 Fibonacci extension of Wave W from Wave X ≈ 586
This creates a strong support cluster region.
RSI Observation
RSI on the weekly timeframe is below the 50 midline and sloping downward, indicating weak momentum.
There is no bullish divergence yet.
A bullish divergence forming inside the 541–606 zone would significantly improve reversal probability.
Invalidation Level
402 is the major invalidation level.
A break below 402 would invalidate the current higher degree impulsive structure from the lows.
Trading Approach – What To Watch Near 541–606
The 541–606 zone is a reaction area.
When price reaches this support cluster, watch for:
- Strong bullish reversal candle on weekly (Hammer / Engulfing)
- RSI bullish divergence
- Completion signs of 5 waves in the final (c) leg
- Break above the falling channel
If price breaks this zone with strong momentum and no divergence, the correction may extend further.
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.
Trade active
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.