AJAYSHARMA
Long

Going into wave iv correction - Buy on dips

NSE:HDFCBANK   HDFC BANK
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There are degrees of Elliott Waves starting downwards. I am giving the relevant ones
1. Cycle I
2. Primary ((1))
3. Intermediate (1)
4. Minor 1
5. Minute ((i))
6. Minuttee (i)
7. Sub minutte i ii iii iv v
8. Micro ((1))
9. Sub micro (1)
10. Minuscule 1
** (( )) means circled.
Here we are looking at the completion of sub minutte iii and start of sub minuttee iv , which is a corrective wave . So the long term price chart is intact . Investors need not worry at all .

1. iii = 1.618 i extended from the end of wave ii . Indicates completion. If not a completion a good pause.
2. All the internal counts of wave iii indicate that it has completed a five wave impulse. It contains an extended micro wave ((3))
3. Corrections in wave 4 position are time corrections and shallow as compared to price correction in wave ii . Correction in wave 2 position are normally 50% to 61.8% of wave i . Corrections in wave 4 positions are 38.2 % of wave 3 . The structure of the correction alternates. Normally we have sharp zig zags in wave 2 and flats or combinations in wave 4 . An Elliott channel drawn connecting wave 1 and wave 3 parallel to wave 2 gives is the end of wave 4 .Or wave 4 ends on the middle line .If wave 4 ends before reaching the channel , it is then redrawn by connecting the end of wave 2 and wave 4 and parallel to wave 1(if wave 3 is very steep) or wave 3.
Here wave ii has corrected only 38.2% . So wave 4 corrected shoud be even shallower . May be it will end on the middle line.
4. If the scrip in in 3 of 3 of 3 at any degree it will show highest rsi in overbought zone which will be a multiyear high for RSI on monthly charts . This is the case with HDFC Bank .

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