Elliott Waves and Beyond Decoding DCM Nouvelle Ltd.

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DCM Nouvelle Limited Overview

Company Background
DCM Nouvelle Limited is an India-based company operating primarily in the textile sector. The company is engaged in the manufacturing and sale of cotton yarn, operating within the Textile segment. DCM Nouvelle stands out as a manufacturer and exporter specializing in cotton carded and combed yarns, offered in both single and two-ply forms.(source Google)

Technical Analysis Highlights

Triangle Breakout with Volumes

There is a triangle breakout with a strong surge in trading volumes, suggesting a potential shift in market sentiment and increased buying interest.

Bullish Divergence and U-Turn

The price, along with technical indicators, has exhibited a bullish divergence, signaling a reversal in the trend. The market has made a U-turn, moving from a bearish to a bullish trajectory.

Elliott Wave Structure

The Elliott Wave analysis suggests that the stock has completed wave (1) and wave (2) on the weekly chart. Currently, it appears to be unfolding wave (3), which has the potential to reach 161.8% of the length of wave (1) from the low of wave (2).

Wave (3) Subdivisions

Within wave (3), there are likely five subdivisions. The analysis indicates that wave (i) within wave 1 has been completed, suggesting further upward movement.

Third Wave in Elliott Waves

The third wave in Elliott Wave theory is often the most powerful and extended wave. It is the primary driving force in a trending market, characterized by strong and sustained price movement in the direction of the overall trend. Traders and investors often look for opportunities to capitalize on the significant price gains associated with the third wave.

Invalidation and Potential Risks:

Invalidation Level

There is an identified invalidation level at 129, which is the low of wave (2). If the price falls below this level, it may indicate a deviation from the expected Elliott Wave pattern.

Assumption Risks

It's crucial to acknowledge that all technical analyses involve a degree of uncertainty. Assumptions may go wrong, and unexpected market developments can lead to different outcomes. In this case, the analysis is based on Elliott Wave principles, and deviations from these patterns are not uncommon.


Risk Warning

Trading and investing in financial markets involve risk. Past performance is not indicative of future results. The analysis provided is for informational purposes only and should not be considered as financial advice.

Market Volatility

Markets can be unpredictable, and conditions may change rapidly. Investors should conduct their own research and consider consulting with a financial advisor before making any investment decisions.

Elliott Wave Disclaimer

Elliott Wave analysis is a subjective tool that relies on the interpretation of patterns. The market may not always conform to these patterns, and outcomes may vary.

I am not Sebi registered analyst. My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses.

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Disclaimer and Risk Warning.

The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.

Triangle Breakout with Good intensity of volumes

Price with indicator got bullish divergence and got U turned

Elliott wave structure on daily chart

Possible Elliott wave structure on weekly chart

Having potential of being 2x

Still at good price zone with Invalidation levels of 129

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I am not sebi registered analyst.
My studies are for educational purpose only.