UNDERDOG-29

IEX:Elliot wave labels+analysis+trade setup+observations

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NSE:IEX   INDIAN ENERGY EXCH
IEX is showing impulsive rise post covid low's.Currently we are in Primary wave 5 (which has taken a form of ending diagonal as it's 5 intermediate wave has 3-3-3-3-3 internal structure)intermediate wave 4 minor C,which can end near 200 odd levels.

Following are the reason for intermediate wave 4 to end around 200-206 levels.

1)100% extention of minor A for minor C is coming @ 199
2)Intermediate wave 2 price action zone is 206-190,wave 4 in ending diagonal does enter and end in wave 2 price action zone.
3)We have raising trendline connecting primary wave 2 and primary wave 4 lows coming @ 190 which will keep on increasing there by giving us a zone of 190-200 as probable support.
4)we have 200 day ema at 180,and by the time we form wave 4 low's this too will rise towards 190 odd levels which can act as support.

Analysis:

So as of now we are in Primary wave 5 intermediate wave 4 minor C,meaning we can see current fall taking prices towards 200 odd levels,from there we can still get a last push on the upside in the stock in the form of intermediate wave 5,however this is the least ideal time for taking a long entry still for short term trader with pre-defined exit one can expect 10% move on the up side once price reverse's from 190-206 zone giving us a final target of 220.Stop-loss for this trade would be the intermediate wave 4 low's,trade setup criteria is discussed below.

Trade setup Criteria:

Again for entry one needs to have bullish reversal candle along with price crossing 9 day ema and breaching 2-4 trendline of minor wave C. Momentum indicator can be used to check oversold levels.Enter once price follows this criteria after entering 190-206 zone,and keep the reversal candle low as initial stop-loss for an upside target of 220.

Observation:

Wave-1:Leading diagonal
Wave-2:Regular flat
Wave-3:200% Extention of wave 1
Wave-4:Running falt
Wave-5:Ending diagonal.

Alternation between wave 2 and wave 4 is seen in terms of prior wave retracement,price,pattern and time.

Disclaimer:This are just my views on this stocks,no position should be build or exited solely on its basis.I am putting this analysis for my future reference.