Current wave count:
as per this count current bounce being an intermediate wave 3 bounce,price should go till 420.(standard 1.618% extention of wave 1 from wave 2 low)
longs can be initiated @ cmp of 338 with a stop-loss of 314 on closing basis and a tgt of 420.
Intermediate 1 is wave X,Intermediate 2 shown here is wave A of third correction and currently wave B bounce is going on.If this bounce fails to cross Intermediate wave 1 high of 364 in less time than wave 1 took to form( before 24th june) than this count will get validation.
This view is also supported by the slow move that is seen after breach of and it's re-test. Basically if Intermediate 1 had crossed wave B high of second correction "y" before 26th April than there wouldn't have been a case of an alternate scenario that is described here.
As per this scenario also longs can be initiated for wave B bounce of third correction with a stop of 315 on daily closing basis on the down side but target would be uncertain because of the unknown nature of the third correction(It could be any flat regular,irregular or running or an triangle) still i would say that stock has a potential to go till 354.
Hence build position accordingly.
Momentum wise stock is showing strength as has crossed 55 levels on and stock is trading above it's 20 ,this is also supported with the positive cross over of 5 over 20 indicating momentum is intact in short-term.
Hence build position accordingly.Follow risk per trade rule in order to size your trade.
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