IDFCFIRSTB on Weekly Chart- Elliott Waves - Long
IDFC First Bank has completed one Elliot Wave cycle with an impulse wave 1-2-3-4-5, starting from INR 18.5 and ending at INR 69.25, and a corrective zig-zag wave A-B-C, ending at INR 40.7. This cycle is a formation of a bigger wave, wave 1 & 2 (which is not marked in the chart). If the analysis holds true, wave 3 has started.
Trading guidelines:
1) Aggressive Trade (arrows shown):
-Entry when the extreme of wave 4 of corrective wave C is broken, i.e INR 52.5
-Stop loss at the end of wave C, i.e INR 40.7
-First Target close to INR 62. This is because there wave B ended and also, there seems to be a strong resistance (conformed by standard pivot point & also on monthly chart)
-Second Target close to INR 75. This calculated on the basis of getting a reward-risk ratio of close to 2:1.
2) Conservative Trade (arrows not shown):
-Entry when start of wave B is crossed, ie close to INR 62.
-Stop loss at the end of wave C, i.e INR 40.7.
-Target close to INR 106. This calculated on the basis of getting a reward-risk ratio of close to 2:1.
Extra:
On checking for fib relationship between bigger wave 1 & 2, wave 2 was expected to reach INR 39.7 (0.618 retracement). However, it reached INR 40.7 as the low, which is close to 0.563 retracement.
Trading guidelines:
1) Aggressive Trade (arrows shown):
-Entry when the extreme of wave 4 of corrective wave C is broken, i.e INR 52.5
-Stop loss at the end of wave C, i.e INR 40.7
-First Target close to INR 62. This is because there wave B ended and also, there seems to be a strong resistance (conformed by standard pivot point & also on monthly chart)
-Second Target close to INR 75. This calculated on the basis of getting a reward-risk ratio of close to 2:1.
2) Conservative Trade (arrows not shown):
-Entry when start of wave B is crossed, ie close to INR 62.
-Stop loss at the end of wave C, i.e INR 40.7.
-Target close to INR 106. This calculated on the basis of getting a reward-risk ratio of close to 2:1.
Extra:
On checking for fib relationship between bigger wave 1 & 2, wave 2 was expected to reach INR 39.7 (0.618 retracement). However, it reached INR 40.7 as the low, which is close to 0.563 retracement.
Comment:
Please note that this script is slow-moving. In past 13 years, it has just formed lower highs (seen on monthly chart). Will require patience to achieve good returns.