UNDERDOG-29

PRESTIGE:Nearing end of Impulse cycle

Short
NSE:PRESTIGE   PRESTIGE ESTATES P
Prestige has shown impulsive rise from the levels of 285 till cmp of 540.Following patterns were observed

wave 1:sub-divided in 5 lower degree waves.
wave 2:retraced 61% wave 1, sharp reaction.
wave 3:161% extention of wave 1 target achieved
wave 4:as wave 2 was sharp and shorter in terms of time,wave 4 turned out to be shallow retracement of of wave 3 and longer in terms of time.Also wave e of triangle is a triangle in itself,typical triangle characteristic.
wave 5:Post triangle thrust in the form of wave 5 is observed,wave 5 price target pf wave 1 equality is achieved and price has also entered triangle thrust target zone.

So far it seems like we might have completed higher degree wave 1/A and current breakout might not sustain,Going ahead we can see price correcting in the form of wave 2/B.One should wait for following trade setup criteria to match inorder to initiate short trade.

1)Price forming bullish reversal candle( Doji ,Dark cloud cover, bearish harami, bearish engulfing , evening star )
2)Price breaking 5 day ema
3)Price crossing reversal candle low.(it seems like we are forming reversal candle today itself,as clearly we have longer upper wick then body).

Once this criteria is matched one can go short with reversal candle high or pivot high made as initial stop-loss, target of wave 4 low coming at 450 can be initial target.(which is also 38% retracement of entire 5 wave impulse cycle considering wave 5 ending at today's high).

Risk reward would depend upon entry price however i feel one can enter below 532 with a stop-loss of 554 and target of 491-455.

Disclaimer:This are just my view on the stock,no position should be build or exited on its basis,posting this just for my future reference.
Trade closed: target reached
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