PFC: Golden Zone Rejection + Demand Support = Reversal?⚡ POWER FINANCE CORP (PFC) – Wave 4 Correction Ending | Demand Zone Reversal Setup!
🧠 Chart Context & Wave Overview
The chart of Power Finance Corporation Ltd (Daily Timeframe) shows a well-structured Elliott Wave corrective pattern (a-b-c) , where price has likely completed its Wave 4 correction and is preparing for a potential Wave 5 bullish impulse .
Price has reached the strong Wave 4 (Weekly) completion zone between ₹394–₹281 , aligning with previous demand generation area and Fibonacci retracement support.
📊 Key Highlights:
Price rejected from Golden Retracement Zone (50–78%) , confirming end of Wave (b).
Structure completed Wave (a)-(b)-(c) corrective leg.
Currently trading near the upper range of Wave 4 support (₹361–₹374) .
📚 Educational Insights
💡 Golden Retracement Zone (50%–78%):
This zone often acts as a major reversal area for corrective waves — it’s where sellers exhaust and buyers step back in.
🔄 Break of Structure (ChoCH):
A confirmed change of character above the last swing high signals the end of correction and beginning of new impulse.
🧩 Demand Zone Reactions:
Demand zones formed by prior accumulation (like ₹360–₹380) usually offer high-probability reversal setups in trending markets.
🎯 Projection & Prediction
🟢 Support / Entry Zone: ₹361 – ₹374
🔵 Second Entry Zone (If retested): ₹281 – ₹300
🔴 Stop Loss (Closing Basis): ₹270
🎯 First Target: ₹468
🚀 Second Target: ₹531
A breakout above ₹395 (trendline resistance) will confirm the structure shift, activating the bullish leg toward the first target zone.
💡 Trading Strategy (Educational Purpose Only)
📈 Entry Plan:
Look for bullish reversal candle patterns (hammer, engulfing) or structure break near ₹360–₹374 zone.
Aggressive traders can accumulate in current demand zone; conservative traders can wait for breakout and retest above ₹395.
🎯 Targets:
• Target 1 → ₹468
• Target 2 → ₹531
⚖️ Risk Management:
• Risk only 1–2% per trade.
• Maintain SL below ₹270 (daily close).
• Avoid chasing after breakout; buy the retest for better risk/reward.
🧩 Educational Takeaways
✅ Elliott Wave + Fibonacci + Demand Zone confluence provides strong reversal probability.
✅ Wave 4 corrections are deep but offer great swing opportunities.
✅ A confirmed structure breakout = early sign of Wave 5 initiation.
✅ Patience and disciplined position sizing are essential for trend reversals.
📊 Summary & Outlook
PFC appears to have completed its Wave 4 correction within the ₹361–₹374 demand zone.
If price sustains above ₹395 and breaks the trendline resistance, a new Wave 5 impulse rally could target ₹468–₹531 in the coming weeks.
The structure remains bullish as long as ₹270 holds on a closing basis. ⚡
⚠️ Disclaimer
I am not a SEBI-registered analyst .
This analysis is for educational and informational purposes only — not financial advice.
Please do your own research or consult a financial advisor before taking trades.
