Axis Bank Wave countElliot Rules and guideline
1)Wave 2 should not retrace entire wave 1(Here on cycle degree it retraced wave 1 by 61.8% which is ideal as per guideline)
2)Any one wave entend's other 2 by 161.8%,other 2 being equal in length(As per guidelineTypically wave 3 extend's and 1 & 5 tends towards equality).Here also Wave 3 extend's wave 1 by 161.8% and wave 1 and 5 tends towards equality
3)We see two different forms of correction in wave 2 and wave 4 one being regular flat in case of wave 2 and other being triangle in case of wave
4 (Triangles are typically formed in wave 4 which is seen over here) which is signifying asymmetry between both the waves.
Current count as per above logic and rules application.
Super cycle: Wave 2
Cycle: Wave C(might have begun)
Before covid prices has started showing weakness and already been correcting,and on the back of covid panic it completed cycle degree wave A of super cycle wave 2.Since then prices has been moving up in an corrective manner and when it approached previous ath levels it faced rasistance.So far we have seen 3 attempts made by price to penitrate ath which all failed to sustain on closing basis.We are also seeing a negative divergence on RSI indicating top formation.Along with this negative divergence price was moving in a rising channel which also got broken and previous pivot low were broken in lesser time then it took to form.
Going ahead we might see an impulsive down move unfolding to complete cycle degree wave c which would complete super cycle wave 2.Price wise super cycle wave 2 has already retraced super cycle wave 1 by 61.8% during wave A formation hence current fall should not break those low's(Covid lows).It is possible that wave C can stop any of the retracement levels be it 23.6%,38.2% or 50%(not shown over here) to complete super cycle wave 2 flat with truncated wave C correction.
Disclaimer:This are just my views do not trade on it's basis.I am post this analysis just for my future reference purpose.
