IDFCFIRSTB on Weekly Chart- Elliott Waves - Long

26 thg 10, 2021

IDFC First Bank has completed one Elliot Wave cycle with an impulse wave 1-2-3-4-5, starting from INR 18.5 and ending at INR 69.25, and a corrective zig-zag wave A-B-C, ending at INR 40.7. This cycle is a formation of a bigger wave, wave 1 & 2 (which is not marked in the chart). If the analysis holds true, wave 3 has started.

Trading guidelines:

1) Aggressive Trade (arrows shown):
-Entry when the extreme of wave 4 of corrective wave C is broken, i.e INR 52.5
-Stop loss at the end of wave C, i.e INR 40.7
-First Target close to INR 62. This is because there wave B ended and also, there seems to be a strong resistance (conformed by standard pivot point & also on monthly chart)
-Second Target close to INR 75. This calculated on the basis of getting a reward-risk ratio of close to 2:1.

2) Conservative Trade (arrows not shown):
-Entry when start of wave B is crossed, ie close to INR 62.
-Stop loss at the end of wave C, i.e INR 40.7.
-Target close to INR 106. This calculated on the basis of getting a reward-risk ratio of close to 2:1.

Extra:
On checking for fib relationship between bigger wave 1 & 2, wave 2 was expected to reach INR 39.7 (0.618 retracement). However, it reached INR 40.7 as the low, which is close to 0.563 retracement.

26 thg 10, 2021

Ghi chú

Please note that this script is slow-moving. In past 13 years, it has just formed lower highs (seen on monthly chart). Will require patience to achieve good returns.