Laurus Lab
CMP 314
From Elliot waves prespective.
We start with quarterly chart to take a bird eye view (for long term).
It is clearly in C part of wave 2 and currently at an important support zone -61.8% of retracement of whole rise and a previous resistance level that has become support now.
It might hold and bounce from here, but we doubt that it might not be sustainable.
We would come to the reason of our doubt when we show the weekly chart.
Quarterly Chart
On monthly chart -Here we show the internal wave counts (fractals of wave 1)
MACD has completed its cycle , it is below zero line but yet to show the signs of getting a long time reversal.
Monthly Chart
On weekly chart, we have tried to check the internals of this correction.
It seems that we are in last leg of correction - that is last C .
The worry here is that it is falling in 5 waves straructure. Till the time ,these are not completed , we might not be out of woods.
Currently we’re in correctiv- wave 3 of the fall. We might see a bounce back (retracement) in corrective -wave 4.
And then another dip in corrective-wave 5 and then the correction should be complete.
Now where this corrective- wave 5 would end ? That would depend on the extent of retracement in corrective-wave 4 ie level where wave 4 ends.
Though we can make a rough guess - we have next strong support at 250-260 and that also matches 161.8% of wave A .And it also coincides the level of wave iv of whole rise (wave 1) , many a times wave 2 corrections end there.
These are all probabilitic projections. Need to keep a close watch.
Weekly Chart
Disclaimer - Have no position.
This post is just an effort for learning few methods of price-patterns. Views are personal. No buy/sell recommendations. These are probability study methods and chances of success/failure depend upon various factors