PERSISTENT : Coming out from the ZONE!Key Observations:
Price Action Context:
The stock is currently trading at ₹5,306, showing a strong +2.78% intraday move.
This price action is occurring within what appears to be an extended retracement zone of the prior swing, suggesting a possible consolidation before continuation.
Wave Analysis (Elliott Wave Perspective):
Wave C appears to have completed in the ₹3,234 – ₹5,464 zone, which is typically where corrective waves terminate before a new impulsive move begins.
The current structure hints at a bullish Wave 5 extension, with a projected completion zone between ₹5,104 – ₹5,229.
Key Levels:
Support (Demand Zone): ₹5,104 – ₹5,229
Resistance (Profit Targets): ₹6,032 (initial) → ₹6,222 (extended)
Invalidation Level: Daily close below ₹5,104
Why This Setup Matters:
Legalarity Concept (Consolidation Before Breakout):
The stock is forming a legalarity structure, which refers to a period of sideways price action after a strong trend.
This often precedes a continuation move if support holds.
Momentum Confirmation:
Today’s bullish candle (+2.78%) suggests buying interest near the support zone.
A decisive break above ₹5,464 (Wave C high) could confirm the next leg up.
Risk Management:
Since no trade setup is perfect, we must define where we’re wrong.
If price closes below ₹5,104, the bullish structure weakens, and traders should reconsider.
Trade Plan (Educational Breakdown):
Entry Logic:
Aggressive Entry: Near current levels (₹5,300 – ₹5,400) with tight stops.
Conservative Entry: Wait for a pullback to ₹5,104 – ₹5,229 support zone.
Profit Targets:
First Target (₹6,032): Partial profit booking level.
Second Target (₹6,222): Extended swing high, where resistance may appear.
Stop Loss:
Daily close below ₹5,104 (invalidates the bullish structure).
Risk-Reward Assessment:
If entering at ₹5,300 with a stop at ₹5,100:
Risk = ₹200 per share
Reward (to ₹6,222) = ₹922 per share
Risk-Reward Ratio = ~1:4.6 (Favorable for swing trades)
Seasonal & Macro Factors:
Historical Trends: The stock has shown strength in Sep-Dec (year-end rally tendencies).
Current Market Sentiment: A breakout above ₹5,464 could attract momentum buyers.
Educational Takeaways:
✅ Always define support/resistance before trading.
✅ Use invalidation levels to manage risk.
✅ Wave analysis helps anticipate where trends may resume.
✅ Risk-reward should justify every trade.
Disclaimer: This is educational content, not financial advice. Do your own analysis.
#NSE #PERSISTENT #TechnicalAnalysis #SwingTrading #StockMarket
How to Use This Analysis:
Watch for confirmation above ₹5,464 for higher conviction.
Adjust position size based on your risk tolerance.
Track price action near targets for exit signals.
