RUSTOMJEE: Structure Shift Pending Structure overview
Price has completed a corrective downswing into a high-probability demand cluster marked as the Wave C completion zone 539–551 , aligning with prior structure support and the recent change‑of‑character (ChoCH) retest. The preceding upswing from May formed an impulsive leg (A), followed by a three‑leg pullback (a‑b‑c) that is now basing near the green box.
The broader thesis is a potential transition from correction to the next advancing leg (C) if the stock holds above the invalidation band and reclaims the upper boundary of the box with expanding volume.
Key levels
Buy zone: 551–539 (staggered entries).
Trigger confirmation: Daily close above 573–575 (ChoCH shelf) and then 588–590 (range high) to open momentum.
Targets: T1 597–605 (gap/structure), T2 654–675 (swing supply), Primary target 754–777 (projected Wave‑C completion).
Invalidation/Stop: Day close below 510–512 cancels the bullish swing; expect deeper retest into 481–441 if violated.
Momentum and pattern notes
The decline into 539–551 shows slowing downside and overlapping candles, consistent with completion of wave c. A higher low above 539 followed by a break of 588 would confirm a trend inflection.
Volume expansion on green days near 560–575 will strengthen the reversal case; weak bounce with fading volume would argue for more range before lift‑off.
Trade plan (cash/swing)
Entry 1: Accumulate small size within 551–539 with a tight stop under 535 intraday and core stop on day close below 510–512.
Entry 2 (confirmation): Add on a daily close above 573–575; raise stop to 545.
Entry 3 (breakout): Add on strong close above 588–590 with volume; trail under the breakout bar low.
Exits: Scale 30–40% at 597–605, another 30% around 654–675, and ride the rest toward 754–777 with a weekly trailing stop under higher lows.
Option tactics (if applicable)
Bull call spread when cash closes above 575: buy near‑ATM call, sell +80 to +120 OTM to reduce theta and cap risk. Consider a calendar call around 560 if expecting a slower grind higher. Exit or roll if the stock loses 575 on a closing basis after entry.
Risk management
Position sizing: Risk a fixed fraction of equity (0.5–1%) based on the 510–512 invalidation; avoid adding if price threatens the stop.
Respect daily/weekly closes for decisions; intraday spikes are common near base zones.
If the stock closes below 510–512, step aside and wait for a fresh base closer to 481–441.
Prediction
Base‑case scenario favors a swing advance from 551–539 toward 597–605, then 654–675 within 2–6 weeks, with the potential to extend into 754–777 if 590 holds post‑breakout and market breadth supports. Failure to reclaim 575–590 quickly would likely keep the stock range‑bound between 551 and 590 before the next directional move.
Disclaimer: This post is for education only and is not investment advice or a solicitation to buy/sell securities; I am not a SEBI registered analyst .
