Since Late 2008 -Maruti from its low@433 had travelled almost in an explosive manner upside, giving us wave-3 which travelled 361.8% of Wave-1.
Recent Month Fall was impulsive down likely finished wave-(A) & travelling in wave-B- Once Wave B is done on Top- We shall have wave-C downside hitting in the zone 3000-3200 where it travels 61.8% distance of the rise from 1215 to 5975- Giving us a confluence zone.
Currently travelling into wave-((y)) within wave-(B) from recent zone 5035-5040 - Likely could hit 5250-5260 & going beyond that zone- it can travel next to 5450-5500- Later to finish wave-(B)
4 Hour Chart- Playing the game of & double bottom
On Short Term Chart- Maruti took a U-turn exactly making a in the zone 5035-5040 zone- looks on a short term basis, having an important support 5035-5040-once gets broken- get out of the car or its engine can burn you.
Short Term Trading Strategy
Look for up move in the zone 5250-5260 but don't jump in the car immediately- wait for a pullback to the zone 5150-5170- "if holds" then look to enter with stops below 5035 for initial targets 5250-5260 -If crosses above that zone sustains then we shall look for 5450-5500 zone next- which shall complete wave-(B)
Long Term Trading Strategy
Going below abruptly or suddenly down move below 5035-5040 zone shall be one of the clue as all is not right with Maruti or going into the zone 5450-5500- we shall look for resistance- remind me to come back- so we all can get out of Maruti .
Got the opportunity for taking long between 5150-5170- low was 5117 - we are bullish against 5035-5040 Double Bottom as mentioned in the post.
Reached 1st Target@5250-5260- Last session's day high was 5278
Jumps 100 + points in the day- heading towards next target zone of 5450-5500.
Now we will wait for next buying only above 5380 & Above -else we will wait at sidelines
Abhishek H. Singh, CMT
Growth Director - TradingView India
YouTube Channel https://www.youtube.com/channel/UCYcnYveYBNLD-Qp54hvZogw