Dr. Reddy's Lab - Power of bulls.After a huge erosion of market capitalization of about 20% from all time high in NSE:DRREDDY along with a significant correction in NSE:CNXPHARMA , it looks like NSE:DRREDDY is getting itself ready for a bounce back to hit the previous resistances.
NSE:DRREDDY is travelling in a parallel channel and right now, it is taking support over T2 while beating the bears and forming dragonfly doji candlestick in 1 week timeframe.
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Trade ideas
DRREDDY NEAR TO DEMAND LEVELHere are the main Elliott wave rules for ABC expanded Flat corrections:
The expanded flat correction pattern subdivides into 3-3-5 internal wave pattern.
Waves C tends towards 162% the length of wave A.
The flat correction wave can appear in any corrective position.
An flat correction wave will usually target the 50% retracement level of the previous move.
A technical analysis on Dr Reddy's LabAs you can see I am trying to guess the future of the stock, its just my theory on seeing the previous charts, as you can see it has taken good support from the green zone(support zone) in cpr, so an entry at that point would be perfect and go long on the stock for 3 month for return of more than 2000 per share, patience is the key. It will form a head and shoulder in 2 months or less and go for a breakout which will give amazing results. Stock market nowadays is sometimes bearish and our analysis could also go wrong so have a stop loss, Have a good day.