GraphiteAnalysis of the Chart for Graphite India Ltd (NSE)
Key Observations:
Elliott Wave Count:
The chart follows an Elliott Wave pattern.
It shows a Wave 1 and Wave 2 completion and a potential Wave 3 initiation.
The projection suggests a strong upward movement for Wave 3, followed by corrective Wave 4 and final Wave 5.
Support and Resistance Levels:
Support Zones: Around ₹254.55 and ₹330.00.
Resistance Levels: Fibonacci projections indicate key resistance near ₹427.00, ₹1,127.00, and ₹1,394.25.
Trendline & Fibonacci Levels:
The price has tested the trendline multiple times, acting as strong support.
Fibonacci retracement levels at 0.618 (₹427.00) and 0.786 (₹151.60) indicate key reaction points.
RSI (Relative Strength Index):
Current RSI = 29.87, which is in the oversold zone (<30). This suggests that the stock might be undervalued and could be due for a bounce-back.
Suggestions:
Bullish Outlook:
If price holds above ₹330 and confirms a reversal, it may trigger Wave 3 rally.
First upside target is around ₹427, followed by ₹1,127 (historical resistance) and potential ₹1,394 (Fibonacci 1.618 level).
Entry could be considered near ₹330 with a stop-loss around ₹254 for risk management.
Bearish Scenario:
If ₹330 support fails, then ₹254 becomes the last major support.
Below ₹254, a bearish breakdown can occur.
Conclusion:
Short-term traders can look for a bounce from ₹330 with a stop-loss at ₹254.
Long-term investors can consider adding positions on dips, aiming for ₹1,127–₹1,394 over the next few years.
Confirmation via volume and breakout above ₹427 is recommended before taking aggressive long positions.
