Price Action and Elliott Wave Harmony Case Study Hello Friends,
Here is a technical case study of RANE HOLDINGS LTD.
Possible Elliott wave structure
Price journey is like a story told in waves. Imagine it like a roller coaster ride. It started from a small point around 40 and climbed all the way up to a super high point at 2799. This upward journey is what we call "Wave (1)." It's like the thrilling part of the ride when you're going up.
After that exciting climb, the stock took a break and dipped down to 280. We call this the "Wave (2)." It's like when the roller coaster slows down for a bit before it goes up again.
What's Happening Now
Right now, it looks like the stock is starting another exciting climb, which we might call "Wave (3)." In roller coaster terms, this is like the part where it goes even higher and faster. It's often the most thrilling part of the ride.
Inside this "Wave (3)," there can be smaller ups and downs, like little bumps in the roller coaster track. We call these "subdivisions." They can give us more details about what's happening in the ride.
Historical Correction and MACD Bullish Divergence
RANE HOLDINGS LTD has a remarkable history. It reached its all-time high of 2799 in March 2018 but then experienced a significant correction, plummeting to a low of 280 in March 2020. This correction marked a staggering decline of almost 90% from its peak. Such corrections often provide an opportunity for a potential turnaround.
During this challenging period, the stock exhibited a promising sign with a MACD Bullish Divergence. A MACD Bullish Divergence occurs when the stock's price makes lower lows, but the MACD indicator forms higher lows. This is a potential reversal signal, indicating that the selling pressure may have weakened, and bullish momentum could be building.
Current Trading at 1200 recovered from 280
As of now, RANE HOLDINGS LTD is trading at 1200. The presence of a MACD Bullish Divergence and the stock's recovery from the lower levels indicate a shift in sentiment and a potential bullish outlook.
Recent Breakouts and Support Levels
In addition to the historical correction and bullish divergence, the stock has shown recent positive price action. It has successfully broken out of a horizontal resistance level on the weekly timeframe. What's even more significant is that the stock retested this same level, suggesting that the previous resistance has now transformed into support. This is often considered a strong technical signal.
Also the breakout was accompanied by a good intensity of volume, indicating significant market participation and conviction among traders and investors. This increase in volume reinforces the significance of the breakout.
MACD Positive Crossover
In conjunction with the breakout and support transformation, the Moving Average Convergence Divergence (MACD) indicator also exhibited a positive crossover in the weekly timeframe. This crossover reinforces the bullish sentiment, aligning with the price action.
Key Takeaways
Elliott wave structure suggesting impulsive move towards north may be reach new all time highs with invalidation level of 280, for Long term period.
The stock experienced a substantial correction, falling almost 90% from its all-time high.
A MACD Bullish Divergence formed during the correction, suggesting a potential reversal in the downtrend.
The stock is currently trading at 1200, indicating a recovery and possible bullish momentum.
Recent breakouts and support transformation, along with strong volume, suggest further upside potential.
The question is will it touch again previous all time highs ?
I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses.
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Hope this post is helpful to community
Thanks
RK💕
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The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
