The rally from ₹50 → ₹310 unfolded in a clean 5-wave impulse, marking the completion of Wave 1.
Since then, the decline has been unfolding as a W–X–Y correction, currently progressing inside Wave 2. The ongoing drop is an unfinished Wave (a), projected toward the support cluster around ₹123–110. This area coincides with the 100% extension of the internal Wave 4 and prior structural support.
Once tested, a corrective Wave (b) bounce may follow, before one final dip in Wave (c) completes Wave Y of 2. A potential double bottom formation near ₹110 cannot be ruled out, which could set the stage for the powerful Wave 3 rally.
Bearish invalidation remains at ₹186.58.
Trade Plan
Bias: Bearish until Wave Y of 2 completes
Entry Zone: Relief rallies into resistances (watch for rejection signs)
Watch for: A corrective Wave (b) bounce, followed by one final leg down in Wave (c)
Stop-loss: Close above ₹186.58 (bearish invalidation)
Target: Support cluster at ₹123–110, with possible extension into a double bottom near ₹110
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
Since then, the decline has been unfolding as a W–X–Y correction, currently progressing inside Wave 2. The ongoing drop is an unfinished Wave (a), projected toward the support cluster around ₹123–110. This area coincides with the 100% extension of the internal Wave 4 and prior structural support.
Once tested, a corrective Wave (b) bounce may follow, before one final dip in Wave (c) completes Wave Y of 2. A potential double bottom formation near ₹110 cannot be ruled out, which could set the stage for the powerful Wave 3 rally.
Bearish invalidation remains at ₹186.58.
Trade Plan
Bias: Bearish until Wave Y of 2 completes
Entry Zone: Relief rallies into resistances (watch for rejection signs)
Watch for: A corrective Wave (b) bounce, followed by one final leg down in Wave (c)
Stop-loss: Close above ₹186.58 (bearish invalidation)
Target: Support cluster at ₹123–110, with possible extension into a double bottom near ₹110
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.