Analysis:
a) Wave 2 and 4 are at 0.5 retracement level and wave 5 couldn't significantly cross wave 3 ending due to high bearishness succumbing to double top formation. A new wave 1 is expected to start after breakout.
b) A wedge formation at a historical support line. However the structure is below 20EMA line. Wait for more confluence.
c) Price Action indicates...
Considering the points mentioned, Bullishness is expected in upcoming trading sessions.
Post is educational.
Please comment for any suggestion/question/feedback.
Consider this setup as educational.
Multi confluence trade setup for bullish action.
a) Elliott Wave Analysis: Consolidation at 0.618 fib level of retracement. Complex Elliott wave 4 consolidation which on breakout would cause the rise of wave 5. Since wave 1 and wave 3 were of equal length, wave 5 should be largest wave.
b) Trend Analysis: Falling Wedge...
Consider this post as educational.
Factors:
a) Falling wedge pattern near historical support lines.
b) Falling flag breakout pattern inside wedge.
c) 20 EMA line acting as Dynamic support at breakout for the next candle if its opening >= Previous close. Probable 20 EMA line upside closing break.
d) An End of a swing low with initial buying thrust.
Short Term...
A strong symmetrical triangle pattern resembles a breakout bullish trend. A conservative trader may look for retest at 0.382 Fib level to find entry level. RR= 3 (min) for short term trade.
Please consider this information as educational and trade upon your volition.
On 8/6/20, SBI had a gap up opening and tested the resistance line of Fibonacci retracement at 23.6%.
As there is bullishness in foreign market, same may appear Indian market today. Considering market structure as bullish, a long trade can be executed considering the same line as profit...
