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Neo Wave

Triple Correction WXYXZ in Infosys# Elliot corrective pattern called Triple Correction WXYXZ. Charecteristics: 1)It is a combination of 3 correction.(Flat 3-3-5,Zigzag 5-3-5,triangle 3-3-3-3-3) 2)Each correction is connected by a counter trending wave x(also takes a form an elliot correction).This wave X is sideways movement there by not correcting significantly prior movement. 3)This three correction can either be flat,zigzag and triangle or a combination of either. As per Elliot generally after triple correction market gives an impulsive move. Over here we are seeing combination of two zigzag(5-3-5) in the Primary wave W and wave Y and third correction is yet to be formed,this third correction can either take form of zigzag(5-3-5) or a triangle(3-3-3-3-3) to complete entire WXYXZ pattern on primary degree Reason behind naming entire movement as an corrective pattern and not an impulse. 1)There's no significant corrective price movement retracing prior up movement by 38.2-50%.Generally after an 5 wave up move one impulsive cycle complete's following which we see deeper correction in prices (atleast 38.2-50% of prior 5 wave impulsive cycle). 2)After every 5 wave impulsive move following correction is only retracing prices by 23% of prior up move there by not following price alternation rule of Elliot wave 2 & wave 4. Reason behind naming current movement WXYXZ triple correction and not WXY double correction. 1)If this was a double correction then post wave Y on primary degree we would have seen impulsive move unfolding on the down side.The sideways movement is indicating that we might be seeing wave Z on the upside in future. Analysis: Wave degrees: Primary :Blue Intermediate:White Minor:Purple for impulse and yellow for correction. Current count Primary:second wave X Intermediate:leg F of diametric pattern(Not labelled) So far it seems like we have completed WXY wave on primary degree, and second connecting wave X is going on.Both the wave X has taken a form of diametric pattern(7 leg corrective pattern) hence currently we are in the 6th leg of second wave X,a drop in the form of 7th leg can come in near future as prices are approaching ATH levels post which we will third correction Z on the upside giving us a target of 2800+. Ideal time for investment as per this count is to wait for a dip towards 1680-1700 zone which would complete 7th leg of wave X post which we could see reversal. Disclaimer:I am posting this analysis for my future reference,positions should be build or exited on the basis of this analysis.
NSE:INFY
by UNDERDOG-29
11
Nifty:possible Neo wave scenario's for short term moves.Letter in green:highest degree Letter in yellow:lower degree then in green Letter in white:lower degree then in yellow Letter in blue:lower degree then in white. !st scenario:Neutral triangle As per neutral triangle wave B(yellow),we are in wave c(green),sub-wave b(yellow),sub-wave e(white),sub-wave g(blue). Minimum target for wave g in blue is coming at 17300,which is not far from current levels hence long's should be protected with stop-losses as post wave g(green) we can see wave c(yellow) unfolding on the down side taking price to 16400-16200 levels.One should look for following things to enter on the short side 1)Price rejection near upper channel line 2)reversal candle near upper channel line 3)price breaking reversal candle low's and 9 day ema in the following candle 4)Overbought momentum indicator readings. Stop-loss can be highest pivot high that is ragistered once above criteria are matched. Disclaimer:This are my personal views on index and no position should be build or exited on its basis.I am posting this just for my future reference.
NSE:NIFTYShort
by UNDERDOG-29
7
Bajaj Finance Neo wave countswe might be ending wave D of neutral triangle in bajaj finance as it seems like wave d took form of a regular flat and target of 100% extention of sub-wave A for sub-wave C is coming at 6457.We also have channel support near those levels along with wave B price action zone starting at 6477 and price touching 6477 level would ful-fill wave D criteria of Neutral triangle. I am not including momentum indicator as it wud be oversold only.Although shown trendline is not B-D trendline but can be considered as significant trend line as we had 4 touch points and going ahead we can see it providing rasistance for wave E bounce. As of now if we get reversal candle followed by a close above reversal candle's high then we can go long for wave E bounce with the reversal candle low as our stop-loss and expect 5-6% of move on the upside unfolding in the form of wave E. Analysis provided here doesnt state that one should go long straight away rather one should wait for price action to confirm end of wave D. I will update this idea once we get trade setup for long trade. Disclamer:This are just my views and i am publishing this for my future reference.
NSE:BAJFINANCE
by UNDERDOG-29
5
Bajaj Finance Neo wave countPost covid we are seeing Bajaj Finance going up forming double correction WXY on primary degree.Currently we are done with wave W(Zigzag correction) followed by wave X(A expanded flat) and right now we are in the making of neutral triangle pattern of which wave A,B,C are done wave D is going on which can take prices to 6350 levels,post which we can see bounce in the form wave E which would be last leg of second correction wave Y on primary degree.This second correction has taken a form of neutral triangle in which wave C is longest wave and wave D enter's wave B's territory there by making head & shoulder top pattern. Long trades should be closed and one can even go short at cmp of 6807 with a closing stop-loss of 7050(today's high)on closing basis for a target of 6350 on the down side. PS:If we get bounce from 6350 levels and considering wave E not registering new high (as per neutral triangle pattern rule),we would be making inverse cup and handle pattern,neckline level for which would be wave E low(most probably 6350) giving us ultimate target of 4646. Disclaimer:This are just my views no positions should be build or exited on it's basis,i am posting this analysis just for my future reference.
NSE:BAJFINANCEShort
by UNDERDOG-29
30
Tata Motors:End of an ImpulseAfter giving fake breakout we have seen price has reversed sharply there by breaking prior swing low in lesser time then prior swing high took to form giving us a double confirmation of trendline breach along with faster retracement.Meaning a significant top has been formed in the stock for atleast next 6 months and It seems like tata motors has ended it's 5 wave impulsive move on the upside on primary degree, when it closed below 485 on 26-11-2021,meaning current correction can take prices to primary wave 4 low's coming at 288-290 levels.Any one entering stock around wave 4 bottom and carrying In the money Long position should protect there profit by keeping a stop-loss as per there risk apetite.Ideally one should exit longs at current levels itself but still for someone with higher risk apetite 435 can be a good level that can act as support and should be kept as stop-loss. Now going ahead on hourly chart it seems like it is making diametric corrective pattern which can take prices between 406-380 levels.Following this we will have upmove in the form of wave X,once wave X is done we can expect another correction unfolding taking prices to sub 300 levels,but as of now 406-380 is price target for the on going correction.As of now it seems like we are done with wave A,B,C and D and currently wave E is going on.One can initiate short trade @ cmp of 458 with a stop of wave D high @ 478 for a target of 418 on the downside. Stop-loss should be trailed everyday to previous day's high on closing basis once trade is in the money from cmp. Disclaimer:This analysis should not be used for creating or exiting new or old position respectively,i am publishing this just for my future reference.
NSE:TATAMOTORSShort
by UNDERDOG-29
18
BANK NIFTY: WXYXZ Triple correction nearing end.As labelled letters in red represents highest degree and that in white represents one degree lower then that discribed in red. So far we have seen bank nifty rising in corrective manner as per Neo wave rules since covid low's in the form of WXYXZ triple correction.we have already seen wave W,X,Y,X and it seems like wave Z might be completing soon if we break 35000 on weekly closing basis with in next couple of weeks(ie by 13-12-2021). Notice the angle of advancing trend in each corrective rise,typically momentum fall's significantly in wave Z and over here we can see this thing happening. This would mean that we might see impulsive fall unfolding on the down side which can retrace entire rise from covid low's by atleast 50% which is coming @ 28970. Personally i feel that we might have already ended wave Z at 41800,as sub-wave B(in white) of wave Z has taken more time then wave A(in white)meaning we can rule out the possibility of correction being a triangle or daimetric pattern.Also 0-B trendline of wave Z has been already breached,hence 35000 from here remains crucial level for getting final confirmation of WXYXZ completion. For entry an exit i am attaching separate chart on daily time frame.
NSE:BANKNIFTYShort
by UNDERDOG-29
1
PEL: H&S top along with impulse ending.Go shortPEL has been moving in an impulsive way Feb 2021,and has completed 5 wave upside impulsive move.Here we are seeing wave 2 not retracing not more then 61% of wave 1, wave 3 extending wave 1 by 161% wave 1,wave 4 not entering wave 2 zone.This are classic elliot wave rules.wave 5 has taken a form of ending diagonal,there by forming neutral triangle pattern,meaning each 5 leg are sub divided in 3 subwave.On 10-11-2021 we saw wave 5 getting completed,confirmation of which we got on 22-11-2021,when prices retraced entire wave 5 in lesser time then it took to form.During this process of wave 5 formation we have clear H&S top pattern formation with a neckline coming between 2470-2500 zone.On friday we saw a breakdown of this neckline giving us a pattern target of 2070 on the down side. It seems like Current fall has taken a form of diametric pattern meaning this entire fall will have 7 leg's,of which 2 leg's are done and currently we are in 3rd leg. Possible scenario for taking trade 1)If market open's at the friday's closing level's, Aggressive trader can take short trade at cmp of 2470 with a stop-loss of 2635 on the upside. 2)If market open's with gap up then one should look for reversal candle or price rejection between 2500-2530 zone for taking short trade. Going ahead stop-loss should be trailed to daily high's once price start's going down. 3)If it gives gap down then dont take trade unless we get pull back. Risk reward is 1:2,meaning stop-loss is about 180 rs and target is 400 rs from 2470-2500 entry zone. Disclaimer:This are my personal view on the stock,analysis done here is only for my future reference,no trade should be build or exited on it's basis.
NSE:PELShort
by UNDERDOG-29
CNX FINANCE:BOW-TIE DIAMMETRICCNX finance is in the middle of making 7 leg bow-tie diametric Neo wave corrective pattern. This pattern has 7 leg each having corrective characteristics.In this pattern we see price contraction in first three legs followed price expansion in last three legs.So far we are done with wave A,B,C,D.wave E is going on potential target of which is coming at 17250.Once we get to this level we can bounce in form wave F till 17950 post which we can again witness selling in form of wave G. On the basis of this view remains sell on rise at the mentioned level.Sell trade should be taken once we reversal candle from around mentioned level and in the next candle we get a close below reversal candle,keeping reversal candle high as selling stop-loss.One can even take long trade with the same logic for entry and stop-loss post wave E is done for wave F rise, but ideally long trade should be avoided as view is bearish and also momentum is on the sell side. In this pattern following rules are mentioned for target calculation. A=G(but can even complete @ 61.8% of wave A) B=F C=E Once this seven leg's are done we can see bounce in the form of wave X/A of new corrective pattern. Disclaimer:This are my views no trade should be exited or build on it's basis.i am posting this analysis for my future reference.
NSE:CNXFINANCEShort
by UNDERDOG-29
Happiest Mind Neo wave countsHAPPIEST MIND NEO WAVE COUNTS. Seems like primary 4 is about to end as minimum time required for wave 4 formation is done in today's trading session,also yesterday it had an strong bullish candle of which we are getting follow through in today's trading session. Now long entry should only be made once trend line is breached and price stays above 25 ema for 2 days,also by 11-11-2021, 31 period cycle low's are due,hence keep an eye on this stock for capturing upside movement in the form of wave 5 till 2000 levels. Long entry should be made above 1365, On Downside 1200 should be kept as initial stop-loss which should be trailed as prices advance in upward direction with a target of 1900-2000 levels. Long entry logic 1)Starting of primary wave 5 2)stock crossing important price action zone of 1355-1365 3)Bullish reversal candle near channel support line 4)Down slopping Trend line breach. 5)Price crossing 25 ema. 6)31 day cycle low nearing DISCLAIMER:There is no guarantee of profits or no exceptions from losses. The study provided is solely the personal views of my research. You are advised to rely on your judgment while investing/Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. Seek help of your financial advisors before investing/trading. I may or may not trade this analysis
NSE:HAPPSTMNDSLong
by UNDERDOG-29
8
CNX AUTO-End of Triple correction WXYXZTime to be cautious on AUTO sector,we have seen a significant corrective rise since covid low's on CNX AUTO INDEX in the form of triple correction WXYXZ,with wave W taking a form of bow-tie diametric pattern,wave Y being a zigzag, and wave Z being a flat correction.Post this we can see impulsive move unfolding on the downside retracing entire WXYXZ pattern by 50%(8325) Look at the angle of ascent,it keeps decreasing with each correction being unfolded on the up side meaning momentum is fading with each higher high's. Long position should be protected with a closing stop of 11000 on CNX AUTO index as move below 11000 would confirm the completion of the pattern.Hence short selling can be done on the breach of 11000 with a stop of 12000 and target of 8325. Individual stock's in AUTO sector should be studied separately but analysis should be correlated with CNX AUTO charts in order to get confirmation. Disclaimer:This analysis is for my future reference no position should be build or exited solely on it's basis.
NSE:CNXAUTOShort
by UNDERDOG-29
How to count Neo wave Impulse Current wave counts Primary-wave 2 (orange) Intermediate-wave A (Blue) Minot-wave B (Red) Minute-wave C (Yellow) Applied Neo wave Impulse Rules: 1)Counting started from faster retraced low 2)wave 2 should not retrace wave 1 by more then 61.8% 3)wave 2 should be equal or longer then wave 1 in terms of time 4)0-2 TL should be clean and price action of 1 should not touch 0-2 TL 5)wave 3 should not be shortest 6)wave 4 should not enter wave 2 zone 7)2-4 channel should not have more then 4 touch point,here on 5th instance channel was broken 8)wave 4 should be longer then wave 3 in terms of time 9)Atleast 1 Alternation between intermediate wave 2 and 4 should be there,here alternation is observed in terms of retracement,pattern complexity,time and price 10)Every new motive wave had 2 stage confirmation. Analysis Looks like Tata steel is certainly not in buying zone,as it has completed intermediate impulse cycle and it has broken minute 2-4 TL,minor 2-4 TL(not shown in the charts),minute 4 low's in lesser time then minute 5 took to form and 21 day simple moving average. A decisive close below 1400 can trigger fresh selling till 1240-1250 where previous price action zone comes along with 23.6% retracement of entire intermediate cycle from 365-1535.Hence short selling can be done if price goes below 1410 with a stop loss of 1460 on the upside and target of 1250 and 1140. Continuing to this logic meanwhile during this fall if price's comes to 1250 level then it will be breaking intermediate 2-4 TL in lesser time then intermediate 5 took to form hence it can be assumed that intermediate top has been formed and going ahead price can even touch 1140 minor 4 lows and 709 intermediate 4 lows(I know it sounds ridiculous at this point) but i am mentioning this becoz it seems like we have completed intermediate impulse cycle. As of now metals stocks are not participating in the on going rally so keep your exposure limited as in case of any major selling portfolio returns would be severely impacted if metals occupies major chunk of your portfolio.One can even start hedging by selling in the money call or of tata steel keeping mentioned spot price as stop-loss.Further Indicator's and Candle stick patterns can be used for efficient entry and exits. PS: Interesting observation skip if you are already boared 1)As per the rules 5th(minute) extention of 5th(Minor) extention of 5th(Intermediate) wave cannot take corrective form unless 1st of highest degree 5th is sub-divided in 3.This is seen in this case.It was confusing me at first that Minor 5th is making terminal impulse by looking at the overall shape i got by connecting TL's but as Minor 1st of Intermediate 5 is not sub-divided in 3 this possiblity can be ruled out,also here Minute 4 has not entered Minute 2 pricezone which confirms termination of Minute,Minor and Intermediate 5th wave @ the shown place as per my view. 2)Both variation of Neo wave pattern Diametric pattern is seen, Diamond Diametric-Intermediate wave 4 Bow-Tie Diametric-Minor wave 4 3)As mentioned by many Author's of wave theory and as noted historically wave 5 in commodities are longest.Here wave 5 is longest in terms of both price and time . I have tried showing everything that i have charted hope-fully anyone reading this finds this post logical just like me
NSE:TATASTEELEducation
by UNDERDOG-29
72