UNDERDOG-29

PEL: H&S top along with impulse ending.Go short

Short
NSE:PEL   PIRAMAL ENTERPRISE
PEL has been moving in an impulsive way Feb 2021,and has completed 5 wave upside impulsive move.Here we are seeing wave 2 not retracing not more then 61% of wave 1, wave 3 extending wave 1 by 161% wave 1,wave 4 not entering wave 2 zone.This are classic elliot wave rules.wave 5 has taken a form of ending diagonal ,there by forming neutral triangle pattern ,meaning each 5 leg are sub divided in 3 subwave.On 10-11-2021 we saw wave 5 getting completed,confirmation of which we got on 22-11-2021,when prices retraced entire wave 5 in lesser time then it took to form.During this process of wave 5 formation we have clear H&S top pattern formation with a neckline coming between 2470-2500 zone.On friday we saw a breakdown of this neckline giving us a pattern target of 2070 on the down side.

It seems like Current fall has taken a form of diametric pattern meaning this entire fall will have 7 leg's,of which 2 leg's are done and currently we are in 3rd leg.

Possible scenario for taking trade

1)If market open's at the friday's closing level's, Aggressive trader can take short trade at cmp of 2470 with a stop-loss of 2635 on the upside.

2)If market open's with gap up then one should look for reversal candle or price rejection between 2500-2530 zone for taking short trade.
Going ahead stop-loss should be trailed to daily high's once price start's going down.

3)If it gives gap down then dont take trade unless we get pull back.

Risk reward is 1:2,meaning stop-loss is about 180 rs and target is 400 rs from 2470-2500 entry zone.

Disclaimer:This are my personal view on the stock,analysis done here is only for my future reference,no trade should be build or exited on it's basis.
Comment:
we had a classic pull back to the break out zone where conservative traders could have initiated short trade in today's trading session.Now it seems like we are set to head towards the mentioned target levels in the coming days.