BANKBARODA: Elliott Wave Analysis & Trendline BreakoutTechnical Analysis of BANKBARODA
Elliott Wave Analysis and Resistance Trendline Breakout
The Chart of the BANKBARODA stock displays an interesting Elliott wave pattern, suggesting a potential bullish scenario. Let's break down the analysis:
Elliott Wave Pattern:
Completed Wave ((4)): The chart seems to have completed a corrective wave ((4)), which took the form of a correction (A) (B) & (C) in blue, inside wave (C) we have witnessed wave 1,2,3,4 & 5 in Red had completed.
Potential Wave 5: The breakout above the resistance trendline suggests the initiation of wave 5, which is expected to be an impulsive move to the upside, possibly towards 300 & 316 or more.
Supporting Divergences:
Bullish Divergence on RSI: The Relative Strength Index (RSI) shows a higher low while the price formed a lower low. This divergence indicates a potential bullish reversal and supports the idea of a rising wave 5.
Potential Upside:
Target for Wave 5: The extent of wave 5 is often unpredictable, but based on standard Elliott Wave principles, it could potentially reach the 1.236 extension of wave 4, This level could be a significant upside target near 316.
Invalidation Level:
229: If the price retraces below the 229 level, it would invalidate the current bullish scenario and suggest a potential continuation of the downtrend at least counts have to change.
Key Takeaways:
The breakout above the resistance trendline and the bullish divergence on the RSI suggest a potential bullish trend for the BANKBARODA stock.
Wave 5 could lead to a significant upside move, potentially reaching the 1.236 extension of wave 4.
However, a break below the 229 level would invalidate the bullish scenario.
Important Note:
Elliott Wave analysis is a complex and subjective technique. It's crucial to remember that there is always a risk of being wrong.
This analysis should not be considered as financial advice. It's essential to conduct your own research or consult with a financial advisor before making any investment decisions.
The information provided in this analysis is for educational purposes only and does not constitute financial advice. The author and the platform are not responsible for any losses or damages arising from the use of this information.
Remember: Elliott Wave analysis is a complex tool that requires practice and experience. It's essential to approach it with caution and always consider the potential risks involved in trading.
I am not Sebi registered analyst.
My studies are for educational purpose only.
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Hope this post is helpful to community
Thanks
RK
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
