MEDICO : Will this respect Golden retracement zone!MERICO BUNDLES LTD
▫️ Chart Analysis:
The stock is currently trading at 48.65, showing a bullish momentum of +5.50% today. The price action aligns with the following key levels derived from Fibonacci retracement, and wave theory:
First String Target (FST): 64 - 67 (near-term resistance zone).
Golden Retracement Zone (GRZ): 57 - 44 (critical Fibonacci support area).
Wave & Connection Completion Zone (WCCZ): 47 - 44 (potential reversal zone for wave cycles).
▫️ Trading Strategy:
Entry Zone: 47 - 44 (WCCZ).
Targets:
Target 1: 57 (lower GRZ boundary).
Target 2: 64 - 67 (FST range).
Stop Loss: Day close below 33 (Wave Completion Zone fail-safe).
▫️ Risk Management:
Position sizing: Allocate ≤2% of capital per trade.
Adjust stops to breakeven if price reaches Target 1.
Trail stops using the SST (8q49) for extended gains.
▫️ Educational Notes:
Golden Retracement Zone (GRZ): A Fibonacci-based support/resistance area (typically 50% - 78%) where price reversals are likely.
Wave & Connection Completion Zone (WCCZ): Combines Elliott Wave theory and harmonic patterns to identify exhaustion points in trends.
Final Thoughts:
This setup emphasizes patience for entry near the WCCZ (44 - 47) and strict adherence to risk parameters. Always validate with volume confirmation and higher timeframe alignment.
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⚠️ Disclaimer: Trade at your own risk. This is not financial advice.
