BHEL – Approaching a Key Reversal Zone on the Weekly ChartBHEL has been in a broader W–X–Y corrective structure since topping out near ₹335 on the weekly timeframe. The first leg down (Wave W) completed around ₹176, followed by a steady recovery that is now pushing into a major resistance zone.
The current bounce looks like the tail end of Wave X , with price entering the 100% extension area of (a) near ₹301. This is a natural place where counter-trend rallies often slow down or fully exhaust.
Momentum remains strong — weekly RSI is pushing into the overbought zone — but there is still no confirmed bearish divergence. In simple terms:
strength is there, but it’s reaching the “watch carefully” zone.
If a bearish candlestick forms inside this highlighted region (shooting star, rejection wick, bearish engulfing, anything with real intent), it could mark the start of Wave Y , potentially dragging the stock much lower over the coming months.
Volume is supportive on the way up, but still not showing the kind of impulsive conviction that usually accompanies a fresh bullish trend.
For now, the plan is straightforward:
Let the weekly candle speak. If sellers step in here, Wave Y may begin. If price breaks above the zone decisively, this count gets challenged.
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.
