DIXON (Weekly) — Wave 4 Bottom Forming?Elliott Wave + Fibonacci Confluence 📈
The weekly chart of Dixon Technologies (India) Ltd. is unfolding a textbook Elliott Wave structure.
After a powerful Wave 3 impulse, the stock is currently digesting gains through a complex Wave 4 correction.
Price is now approaching a high-probability demand zone, where Fibonacci retracement meets Elliott Wave theory — often a fertile ground for trend resumption.
Let’s decode the structure and map the strategy ahead. 👇
📉 Technical Structure Breakdown
🔹 1. Elliott Wave Context (Weekly)
Wave 3 (Impulse Peak):
Strong vertical rally completing above ₹20,000, reflecting momentum expansion.
Wave 4 (Ongoing Correction):
A corrective, time-consuming phase — aligning well with the Principle of Alternation.
Internal Structure of Wave 4:
Wave (a): Sharp decline toward ₹12,000
Wave (b): Relief rally / dead-cat bounce into prior resistance
Wave (c): Final corrective leg now testing the Fresh Demand Generation Zone
📌 Key Demand Zone: ₹11,525 – ₹10,925
🔹 2. Fibonacci Confluence (Golden Zone)
The highlighted zone on the chart marks the probable Wave-4 completion area, aligning with:
0.382–0.5 Fibonacci retracement of the entire Wave-3 move
A classic Wave-4 retracement depth, which is typically shallow compared to Wave-2
This confluence strengthens the probability of structural support.
🔹 3. Price Action & Volume Clues
Price is attempting to stabilize and bounce from the lower end of the retracement band
Volume expansion at lower levels suggests:
Short covering by late sellers
Early accumulation by informed participants
📊 This behavior is commonly seen near intermediate cycle bottoms.
🎯 Trading & Investment Strategy
🛒 Entry Plan
Aggressive Entry:
Partial position around ₹12,165, with strict risk control
Conservative Entry:
Wait for a weekly reversal candle or strong demand reaction inside
₹10,925 – ₹11,525
🏁 Upside Targets
🎯 Short-Term: ₹15,369 (Previous structure resistance)
🎯 Mid-Term: ₹17,566 (Wave-(b) high / supply zone)
🚀 Long-Term (Wave-5 Projection):
Retest of ATHs with potential extension toward ₹22,000+, if impulse resumes
🛡️ Risk Management
Swing / Mid-Term SL: ₹10,915 (Below demand zone)
Hard Invalidation (Wave Count): ₹8,851
A break below this level invalidates the bullish Elliott Wave structure
⚠️ Position sizing is critical — Wave-4 trades require patience and discipline.
📚 Educational Insights (For Traders)
Principle of Alternation:
Wave-2 was sharp and deep → Wave-4 is expected to be complex / sideways
Why 0.382 Matters:
Wave-4 corrections often terminate near 38.2% retracement of Wave-3
Demand Generation Zones:
Areas where price consolidated before a breakout often act as magnets during corrections
💡 Final View
DIXON remains structurally bullish on the higher timeframe.
While the current correction feels uncomfortable, it is healthy and necessary within a long-term uptrend.
📌 The ₹11k–₹12k zone is a patience zone, where Wave-5 preparation may be underway.
➡️ Question for traders:
Is Wave-4 already complete, or do we see one final flush toward ₹10,900 before lift off?
Share your thoughts below 👇
⚠️ Disclaimer
This analysis is for educational purposes only.
I am not a SEBI registered analyst.
Markets are uncertain, and I may be wrong — please manage risk accordingly.
