IDFC Bank About To Give BreakoutIDFC Bank About To Give Breakout keep in radar buy above 49.5 keep sl@ 47 and wait for closing above 49.
IDFCFIRSTB trade ideas
BUY IDFCFIRST BANK ON BREAKOUTIDFCBank First bank is at the verge of a breakout and looks good to buy above trendline for marked targets on the chart.
To motivate us, Please like the idea If you agree with the analysis.
Happy Trading!
InvestPro India Team
CLASSIC ELLIOT WAVE PATTERN AND TRADE SETUP LOGICPost covid IDFC FIRST has been moving up in an impulsive manner.Impulsive move advance's price in 5 waves of which 1,3 and 5 are in the direction of primary trend and 2 and 4 are counter trending.
Elliot wave Patterns discussed in this chart and it's rules.
*Elliot wave impulse pattern and rules:
#Impulse pattern
1)Wave 2 doesnt retrace wave 1 completely.
2)Wave 3 cannot be shortest of wave 1,3,and 5
3)Wave 4 should not enter wave 1 price action zone or wave 2(incase wave 2 being an running flat correction ).
#leading diagonal
Leading Diagonal:It is variation of an impulse pattern where in we see 5 wave advance in the direction of primary trend but rule 3 of impulse pattern is not followed by wave 4 and wave 4 enter's wave 1 zone.Rest of the impulse rules remains same.It can have internal structure 5-3-5-3-5 or 3-3-3-3-3.
#Extention
Extention pattern is nothing but any motive wave sub-dividing itself in 5 sub-waves of smaller degree and extending either of the motive wave by at least 161%,in this case we can see this happening in wave 3.(a classic pattern)
*Elliot wave Corrective pattern and rules:
#Flat:
1)It is a 3 wave (A-B-C) pattern,in a counter trending direction.
2)It has internal structure of 3-3-5.
There are many variation of FLAT correction depending upon wave B and wave C's length.One of which is Flat with truncated C which is seen in this chart and discussed below.
Truncated Flat:It is a variation of elliot wave corrective pattern called a FLAT correction which has 3 sub-waves(A-B-C) of almost equal length in the opposite direction of primary trend having internal structure of 3-3-5.In truncated wave C FLAT,sub-wave C doesnt retrace sub-wave A entirely by 100%,indicating strength in primary trend.
#Triangle:
Triangle is corrective pattern with 5 leg's in the form of A,B,C,D,E.Triangles are generally seen in wave 4.It has internal structure of 3-3-3-3-3.There are 3 main variation of triangle pattern ,regular triangle,expanding triangle or neutral triangle.Over here we are seeing either expanding or a neutral triangle.But i am only specifying rules of neutral triangle over here reason for which is discussed in detail below in analysis part.
Neutral Triangle:
Here wave C is longest among wave A,C and E and hence instead of A-C we connect C-E trendline in triangle formation.Triangle's are tricky pattern to trade.In classic technical analysis a head and shoulder pattern top or bottom represents neutral triangle.
Following patterns are observed in this chart:
Wave-1)Leading Diagonal-we had 5 sub-wave where in wave 4 was over-lapping wave 2.
Wave-2 ) ABC FLAT with Truncated C,meaning wave C didn't achieved it's regular flat 100% wave A extention target,indicating strong momentum in wave 3,also wave 1 was only retraced by 38% which again indicates wave 3 will be extended.
Wave-3)Classic 261.8% extention of wave-1,nothing much to explain as it's a text book elliot pattern where in momentum is strongest.
Wave-4)Triangle(either neutral or expanding),again a typical elliot 4th wave pattern where we see prices correctiong in 5 leg's A,B,C,D,E each internally sub-dividing in 3 waves giving entire structure 3-3-3-3-3 internal structure.
Analysis:As of now we are in wave 4 in primary degree,making either of the above mentioned triangle.So far we have already seen 4 leg's of this triangle and wave E is going on.In this wave E we are done with wave A and B and currently wave C is going on.I am considering this wave E as a regular flat.
Reason behind wave -4 to end near 44 levels.
1)100% wave A extention target of wave C for regular flat correction in wave E of triangle is coming @ 44. 05 INR
2)We also have 61.8% retracement of entire primary wave 3 coming @ 44.95
3)Add to it we also have intermediate wave 4 low of primary wave 3 @ 43.50 odd levels
4)lastly we have raising trend-line connecting triangle's wave C low's and wave E's sub wave B(not shown) coming at 45 odd levels.
This are sufficient evidence for priamry wave-4 to end near 43-45 levels.
Trade setup
1)For Conservative trader:
One can go long once the B-D trend-line of triangle get's broken which is coming at 50 odd levels with a initial stop-loss of wave 4 low's and expect wave 5 to be of equal length of wave 1 giving us price target of 61.Risk reward would be 1:2 expecting wave 4 ending @ 44-45 levels.
2)For Aggressive trader:
For some one who is aggressive can take long's once we get reversal candle in our target zone of 43-45 on daily chart meaning a morning star , hammer , bullish peircing, bullish engulfing candle sort of candle.Stop-loss would be same wave 4 low,however in this case we would be showing commitment before market commits itself but then one does get better risk-reward by entering early.Here also target will remain same of 61 but risk reward will be better compare to 1st scenario.
One can even add momentum indicator and a short-term moving average for further confirmation in order to take entry .
PS:Analysis shows classic text book elliot wave pattern and it's characteristics which is very rare to find on practical charts,hopefully this post help's someone who is learning elliot wave theory.We are also seeing alternation between wave 2 and wave 4 interms of price,pattern,time and retracement which is again a classic impulse characteristic.
Disclaimer:Analysis provided here is for educational purpose,trades should not be taken solely on its basis
Idfc first bankIdfc first bank
Above 45
Target 49,50,55
Stop loss 45 below closing day chart then closing position
IDFCFIRSTB Triangle patternIDFCFIRSTB
Time frame -1 day
triangle pattern
22-01-2022
*MY ANALYSIS ONLY, BEFORE INVESTMENT TAKE ADVICE FROM YOUR ADVISOR.
IDFC FIRST BANKHave patience for idfc first bank.A good support at 44-45 area is where you have to go long for a target of 49 and 52.IT will be achieved by next 8 week.Time line for a 8week target is 52.
IDFCFIRSTBIt's breakout the channel pattern
and again form a channel pattern
that's may be break
then we will expecting
20%
IDFC First Bank reversal actionIDFC first bank structure breakout and retest, should see good upmove from here.
IDFCFirstBankA simple Symmetrical Triangle pattern on weekly timeframe a breakout will give excellent breakout , got a good result on last quarter , if the result of this quarter come good it will be a fantastic explosive breakout.
IDFC FIRST BANK 1D TFIDFC Bank broke and retested the channel pattern. It might be risky trade but with good R:R.
CMP :- 50.55
SL :- 46
Target 69++
R:R :- 1:4
P.S. :- Also a good stock for long term, can give good returns in the coming future.
NSE IDFCFirstBank Bullish Cycle Started
Preface:
IDFC First bank is ready to march upward. After making the high of 69.30, the Price has started the corrective wave four and took 179 days to complete. The ending point of wave 4 is the starting point of impulsive wave 5.
Wave Formations And Fibonacci Relationships:
Wave 1 is a Leading diagonal which has a 3-3-3-3-3 sub-wave structure.
Wave 2 is a combination where wave 'W' is a zigzag & wave 'Y' is a triangle. Fibonacci retracement of wave 2 is 38.2% of wave 1.
Wave 2 is not exceeding the starting point of wave 1.
Wave 3 is an extensive impulse. 3rd wave has 261.8% retracement of wave 1.
Wave 4 is a zigzag correction with a 5-3-5 wave structure.
Sub-wave of wave 4 fulfilled the rule of equality (wave A= wave C).
Wave 4 retraced 78.6% of wave 3.
What will happen next?
Completion of sub-wave C indicates that the corrective wave has ended. Price has started forming sub-waves of wave 5.
Wave (ii) retraced 78.6% of wave (i).
If the IDFC First Bank breaks the high of wave 1, it will confirm the impulsive behavior of wave (iii).
(Note that the ending point of the corrective wave is the starting point of an impulsive wave.)
A trader can expect the following targets: 64-74.64- 86.2+
Target 1: 64
{Clusters: high of wave B,161.8% of wave (iii), 78.6% of reverse Fibonacci retracement of wave 4}
Target 2: 74.64
{Clusters: 2.618% of wave (i) through (iii), 161.8% of wave 1 through 3}
Target 3: 86.23
{Clusters:78.6% reverse Fibonacci retracement of wave 4, dynamic resistance}
IDFCFIRSTB LONGI hope you can now see how IDFCFIRSTB represents an excellent low risk profit entry setup allowing you to trade in the market.Take positions so that the risk/reward is in your favor.
Knowing why, where & when a strong reversal signal is being generated will be the only way to capitalize on your technical analysis .
Disclaimer: It should not be assumed that the methods, techniques, or indicators presented in these chart will be profitable or that they will not result in losses. There is no assurance that the strategies and methods presented will be successful for you. Past results are not necessarily indicative of future results. You should not trade with money that you cannot afford to lose. Examples presented in these charts are for educational purposes only and it should not be assumed that these are indicative of ordinary trades. These setups are not solicitations of any order to buy or sell. The publisher assume no responsibility for your trading results. There is a high degree of risk in trading.
IDFC First BankSupport and Falling channel breakout
47-50 will act as strong support and demand zone.
IDFC first bank @support and falling channel breakoutIDFC first bank
Taking support at horizontal line and at same level gave falling channel breakout.
