RUDRA007

Hero moto case study

Long
NSE:HEROMOTOCO   HERO MOTOCORP LTD
HERO MOTO SPOT 2675

HARMONIC + PRICE ACTION + CHART PATTERN + TIME CYCLE + HISTORICAL CYCLIC STUDY

TIME FRAME :- WEEKLY

We have considered historical case study, where counter gave a upmove of around 128% after that there was a retracement of 30% and finally a up-move of 81%
In this historical case we have considered pole and flag pattern formation,, where flag formation is in form of falling contracting wedge .. time of flag formation was around 39 weeks.
In flag formation there was formation of double bottom pattern, with positive divergence on RSI and at same time RSI gave a retest of breakout of falling trend line .
After the retracement was over counter gave a upmove of 81% from the low of retracement zone,, time consideration in pole and final leg of upmove have relation of 1.2 time.

Current case Study :-
There was a first up move leg of 130% after that current retracement zone going on where counter have retraced 28% which is almost equal to historical case study. Now if history have to repeat counter can give up move of 81% from current bottom of this retracement zone.
In this current case study there is pole and flag pattern formation,, where the flag formation is in form of falling contracting wedge , time of flag formation is almost 36 weeks, almost same a historical case study, if it have to be 39 week which means still consolidation of 2 more weeks possible in counter after that breakout from the flag formation can be seen, as time of pole formation is different for both the case so in terms of percentage time it can give breakout any time now.
In flag formation there is formation of double bottom pattern, with positive divergence on RSI and at same time RSI gave a retest of breakout of falling trend line , perfect copy of historical case study.
so now as per this cyclic study if counter gives breakout from pole and falg formation and time cycle maturity it can give upmove of 81% from current levels which will lead counter to around 4800 levels. and approx time for this move would be till november of 2022 as per historical time calculation.

Harmonic Study :-
Butterfly pattern formation on weekly time frame
Pre assumption of Butterfly pattern lead us to following conculsion
Leg C of Butterfly pattern formation is on verge to mature and if the final leg D of the pattern unfold ,
Which as per theory should be 1.27% extention of Leg XA , would lead us to levels of 4800 levels .
So pattern maturity lies around levels of 4800 as per butterfly formation.

Conclusion :- Two case study as per price action , chart pattern formation, time cycle lead us to levels of 4800 levels and harmonic study also lead us to levels of 4800 levels,,

Counter can be considered as good investment candidate from current levels..
for targets of 3600-4200-4800

Trade type : Investment
Time horizon :- 12-15 months

Good investment candidate.