LICHSG Turning Swiftly from Bear to Bull?🧠 Market Structure & Wave Context
The chart shows a clear weekly ABC corrective pattern where price has retraced deeply into the highlighted ABC pattern completion zone (₹484–₹494).
This zone aligns with the typical Wave 4 zone of the previous impulse (Wave 3), and price is reacting within an area where earlier swings also found support.
Earlier:
A sharp rally formed the major Wave 3 high around the ₹695 region.
This was followed by profit booking and a decline into the typical retracement region of Wave 4.
The corrective structure has unfolded into A → B → C, with Wave C now approaching the marked completion area.
This behaviour reflects a healthy correction, not a trend collapse.
📚 Educational Notes (Based on Chart Labels)
ABC Pattern Completion Zone (₹484–₹494):
Weekly charts often complete deeper corrections inside such zones. Price reaching this area suggests a potential end of the corrective cycle.
Golden Zone Pullback:
Chart text shows price previously reacting from the 50%–78% Fibonacci zone, confirming the logic of retracement-based reversals.
Wave Count Change Indication:
An extended retracement in the past led to a change in wave count where Wave C turned into a new Wave 3.
This highlights why extended retracements must be read cautiously.
Typical Wave 4 Zone:
The chart notes that price is sitting at the common Wave 4 depth — 38.2% to 61.8% of the prior wave — a region where large trend moves often resume.
🎯 Predictions (Strictly Based on Chart Targets)
First Swing Target Zone: ₹698 – ₹717
Long-Term Target: ₹869
These levels are shown directly on the chart as potential upside objectives.
🛑 Stop Loss (Weekly Close Basis): ₹474
(as written on the chart itself)
📈 Risk–Reward View (Based Only on Chart Levels)
Entry Zone: ₹484–₹494
Stop Loss: ₹474
Upside Target: ₹717
Approx reward vs. risk as per chart structure:
➡ High R:R potential, since downside is limited to the SL zone and upside targets are significantly higher.
💡 Strategy (Exactly As Chart Suggests)
Buy near the ABC completion zone (₹484–₹494).
Weekly confirmation preferred before scaling — candle close stability above the zone is crucial.
Targets:
• First target → ₹698–₹717
• Long-term target → ₹869
Stop Loss:
Weekly close below ₹474 invalidates the ABC pattern and the corrective structure indicated.
⚠️ Disclaimer
Not SEBI registered.
For educational study of chart structure only — all levels are taken directly from the attached chart.
