A long term triple zig zag correction in Sunpharma is coming to an end after a 30 month correction.
Investment range from 450 to 380 levels.
Last zig zag is forming a falling wedge.
RSI is below 30 levels in month timeframe...testing this level 1st time in stock history.
EW potential is larger 2nd...
Below 435, potential for price to go an outer extent of 380...
1. Clear A-B-C fall in formation.
2. Clear 5 waves fall in formation in the C wave. Referring to weekly and day chart.
3. Positive divergence in RSI ( 9 and 14 period ). MACD ( slow and fast )
4. 62% retrace of the rise from 119 to 1263 is a 552.
5. Previous weekly consolidation zone in 609 to 487 ( expanded range )
6. Month timeframe slow stoch in oversold zone....
A clean A-B-C structure
A clean 5 wave sub-wave structure in C
A falling wedge
Positive divergence in RSI ( 9 and 14 period )
Positive divergence in MACD ( Fast and Slow )
Positive divergence in Slow Stochastics
Bearish below 225 on weekly closing basis.
A chart which i have often shared since Dec 2016 lows on a projected path. Truly Nifty went along the path and now is on the verge of completing the 1st of the Larger 3rd...and then embark on a time consuming 2nd wave correction.
SL = Monthly close above 10250.
A sharp rise from 1036 to 1170 and since then a broad sideways consolidation. Awaiting breakout / breakdown.
As the consolidation is happening after rise...expecting breakout as long as price holds 1130 on day closing basis.
Labels in Red are bearish view. Labels in Green are Bullish view. A contracting triangle in play..either as larger 2nd in green OR b of B of ongoing correction.
Either ways...either c of the B ( red ) OR 3rd of Green should un-ravel once the trendlines are broken on upside.
Stoploss = 2 days closing below 2550.
A long term chart of CNX Pharma Index. Light at the end of the tunnel after a 26 month ongoing correction.
Likely in its last leg of the "shakeout" bulls fall.....after which either a strong corrective rally OR even a larger reversal.
time to start focusing on select pharma stocks to start SIP for long term invesment gains.
In its 21st week ( Fibonacci number ) of the rally from the lows of 7893...along with a 5 wave rise in Day TF...+ Developing shooting star candlestick pattern..calls for an aggressive sell in Nifty.
Attached is a long term chart of Nifty which was shared in December / Jan with a breakout scenario. Reposting the same chart to ensure continuity and have only 1...
Seemingly from the highs a complex A-B-C correction is about to end with a ending diagonal in 5th of C + Positive divergence in Day timeframe in RSI and MACD indicators.
Aggressively holding above 2540 on day closing basis..expect a strong rally as part of larger correction OR embark on a journey to new life highs as 5th UP in larger timeframe
A clean 5 wave decline in day TF and 4 Hr TF along with RSI, MACD positive divergence + breaking out of a falling wedge.
Above the cloud - uptrend resumes in day TF.
Larger TF : 5 wave decline ( Part A of the correction ) in week TF from highs and then a corrective upmove to the fall from highs. Likely c ( 5 wave ) of B has ended ...if the next uptrend form...