Tata Motors has completed a clear five-wave advance from the April low of 535.75 to a high near 742, which is being marked as wave 1. After that peak, the stock entered a corrective phase and has now dropped into what appears to be an a-b-c structure (expanding flat), likely forming wave 2. The recent decline has reached the 1.618 extension of wave a, with wave c possibly ending near 672.
This 1.618 level is often where deeper corrections tend to exhaust, and price has also moved below the lower edge of the Bollinger Band, which can signal short-term pressure easing. These two conditions together suggest that the current downmove may be ending. If this count is correct, the next move should be a fresh upward rally in the form of wave 3.
For this idea to stay valid, wave 2 must not fall below the April low at 535.75, which serves as the key invalidation level. Until then, the setup remains constructive, with early signs pointing to a possible bounce from here.
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.
This 1.618 level is often where deeper corrections tend to exhaust, and price has also moved below the lower edge of the Bollinger Band, which can signal short-term pressure easing. These two conditions together suggest that the current downmove may be ending. If this count is correct, the next move should be a fresh upward rally in the form of wave 3.
For this idea to stay valid, wave 2 must not fall below the April low at 535.75, which serves as the key invalidation level. Until then, the setup remains constructive, with early signs pointing to a possible bounce from here.
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.
Note
Still holding up !!
WaveXplorer | Elliott Wave insights
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📊 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
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.