Hdfc bank Study

HDFC Bank spot CMP :- 1687

Elliot wave + Harmonic + Chart patterns + Price action.

Time Frame : Daily

Chart Patterns :- Rising contracting wedge formation on larger scale, with demand line around 1590-1600 levels, act as good support for the counter and supply line around 1800-1830 which would act as strong resistance levels,,
Symmetrical triangle formation ( black dotted line coincide with harmonic pattern ) counter gave break out from this formation around 1490-1510 levels, pattern have height of 248 points,, which after breakout would lead to a measured move of 248 points, so from breakout levels move of 248 points would lead to 1755-1770 levels, which would act as intermediate resistance for the counter.

pre covid life high for the counter was around 1305 levels from where counter gave a fall of 566 points, once this life high was taken out counter is continuously maintaining its uptrend till date, now adding same points to previous life high would give us the maturity point of the measured move,, 1305+566 = 1872, These will be the levels to be watched for maturity of uptrend..

Elliot wave :- Counter is trading in 5 impulse leg of impulse phase,, counter recently gave a breakout above the level of previous swing high which was around 1640 levels, and have entered the final upside leg of the impulse phase,,
wave 1 consist of 280 points, wave 2 have retraced around 70% of wave 1 which can retrace around 61.8 to 88.6% as per theory.
Wave 3 consist of 815 points, which is extended around 2.618% of wave 1, according to theory it should be between 1.618 to 3.618% of wave 1 and is longest and strongest wave of impulse phase.
Wave 4 have retraced around 38.2% of wave 3, which should be around 23.6 to 50% of wave 3, wave 4 always have shallow corrections and time consuming, they are in forms of triangles, zig zag and flats.
wave 5 should be in form of ending diagonal or wedge form where volumes are lighter than volume of wave 3, it can be equivalent to wave 1 in terms of points or in terms of % move,, but should be less than range of wave 3,
Calculating probabilities of wave 5 , if wave 5 is extended wave of wave 1, we get 280*1.618 = 454 points.
low of wave 4 is around 1353 levels, 1353+454 = 1807,,
if wave 5 is retracement wave of wave 3, we get 815*0.618 = 504 points.
low of wave 4 is around 1353, 1353 + 504 = 1856.

from this we get range of 1807-1856 between which last leg of impulse phase might mature.
Harmonic pattern : Bearish crab pattern formation on daily time frame with PRZ level around 1815-1840, last leg of formation might mature around this levels, from where the probabilites of reversal becomes higher.
Levels as per symmetrical triangle, 1756 as resistance level
levels as per elliot wave , 1807-1856 as resistance levels
Levels as per measured move, 1872 as resistance levels
levels as per harmonic study, 1815-1840 as potential reversal levels
Levels as per rising contracting wedge ,1800-1830..

So from all this 1756 would act as intermediate resistance levels and range of 1810-1850 would act as stiff resistance zone where lots of patterns and study are maturing in same range.