CAPLIPOINT : A Textbook Elliott Wave Correction Unfolding

\Timeframe:\ Daily
\Structure:\ Corrective to Impulsive
\Type:\ Educational Swing Setup

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🔍 \1. Context and Background:\

CAPLIPOINT has exhibited a classic 5-wave impulsive rally followed by a correction phase, aligning neatly with \Elliott Wave Theory\. Currently, the stock appears to be in \Wave 4 correction\ – often a shallow, sideways or ABC-type pattern – preparing for a potential \Wave 5 impulse\.

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📈 \2. Wave Structure Breakdown:\

* \Wave 1 to Wave 3\ completed with good strength.
* \Wave 3\ peaked near \₹2390\, showing signs of extension.
* The ongoing \Wave 4 correction\ seems to be forming a textbook \ABC pattern\:

* \Wave A and Wave B\ completed.
* \Wave C\ likely completed or very close to completion inside the support zone.

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🟦 \3. Wave 4 Correction Zone – ₹1928 to ₹2068:\

This zone offers a \high-probability reversal area\ supported by:

* \38.2%–50% Fibonacci retracement\ of Wave 3.
* Confluence with \previous consolidation\ support.
* Price action showing \long wicks and small candles\, signaling accumulation or demand.

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🟥 \4. Wave C and Critical Support – ₹1887:\

* ₹1887 is likely the \end of Wave C\ and the complete ABC correction.
* Based on:

* \113%–127% Fibonacci extension\ of Wave A (classic C-wave completion area).
* Strong \volume spike and price rejection\ near this zone.

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🟪 \5. Wave 5 Target Projection – ₹2389 to ₹2410:\

Projected using:

* \Fibonacci extension\ of Wave 1 from Wave 4 low.
* \Measured move technique\.
* Target aligns with previous resistance around \Wave 3 top at ₹2390\.

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🛑 \6. Stop Loss & Invalidation Level:\

* \Invalidation below ₹1887\ on a daily close.
* A close below this would signal a potential \deeper correction\ toward ₹1547–1660 zone.

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✅ \7. Strategic Swing Trade Plan:\

* \Entry Zone:\ ₹1930 – ₹2065
* \Stop Loss:\ ₹1887 (daily close basis)
* \Target 1:\ ₹2250
* \Target 2:\ ₹2389–2410 (projected Wave 5 zone)

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### 🧠 \8. Why This Setup is Educational:\

* \Textbook Elliott Wave Pattern:\ Classic 5-wave setup with ABC correction.
* \Fibonacci Confluence:\ Retracement and extensions align perfectly.
* \Price Action Validation:\ Support zone showing bullish characteristics.
* \Defined Risk-Reward:\ Excellent R\:R with tight SL.
* \Momentum Potential:\ Wave 5 often brings sharp, fast moves—ideal for swing setups.

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📌 \Conclusion:\

CAPLIPOINT is completing a clean \Wave 4 correction\ and preparing for its \final impulsive Wave 5\. If \₹1887\ holds, the stock may target \₹2389–2410\ in the coming sessions. A technically rich and structurally strong swing opportunity for serious traders and wave enthusiasts.