RattanIndia Power, a penny stock, has been making the rounds lately with a sharp rally from ₹8.51 to ₹16.24. The buzz is strong, and retail interest is rising—but even with penny stocks, it’s worth taking a proper technical look before jumping in.
The current structure resembles a flat correction, forming after what appears to be a completed Wave 3. Price recently tagged a potential double top near ₹16.13/16.24, and bearish divergence is visible on the RSI—a classic warning sign. If this setup plays out, the stock could now be heading into a Wave C decline, unfolding in five legs, with key downside targets at ₹12.66 and ₹10.45.
That ₹10.45 level is critical—it marks the 1.618 extension of Wave A. A decisive break below it may signal broader weakness beyond just a flat correction.
Still, there is an alternate possibility. If price breaks above ₹16.24 with strong momentum and volume, the recent blue-marked ABC move might instead be the early legs of a new impulse wave. In that case, ₹12.55 could be reinterpreted as Wave 4, and the uptrend might continue. But without that breakout, the bearish setup holds more weight.
Disclaimer: This analysis is for educational purposes only and is not investment advice. Please do your own research or consult a financial advisor before making trading decisions.
The current structure resembles a flat correction, forming after what appears to be a completed Wave 3. Price recently tagged a potential double top near ₹16.13/16.24, and bearish divergence is visible on the RSI—a classic warning sign. If this setup plays out, the stock could now be heading into a Wave C decline, unfolding in five legs, with key downside targets at ₹12.66 and ₹10.45.
That ₹10.45 level is critical—it marks the 1.618 extension of Wave A. A decisive break below it may signal broader weakness beyond just a flat correction.
Still, there is an alternate possibility. If price breaks above ₹16.24 with strong momentum and volume, the recent blue-marked ABC move might instead be the early legs of a new impulse wave. In that case, ₹12.55 could be reinterpreted as Wave 4, and the uptrend might continue. But without that breakout, the bearish setup holds more weight.
Disclaimer: This analysis is for educational purposes only and is not investment advice. Please do your own research or consult a financial advisor before making trading decisions.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
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.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
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.