POONAWALLA FINCORP - 5th wave leading to 60% up move?

This stock serves as a textbook example of identifying the conclusion of a wave 4. The stock remained in the third wave until January 2024. Observing the channel, it exhibited a throwover before quickly descending to breach the lower boundary of the channel.This tempts the bears to go short.

In such instances, the fourth wave typically concludes at a 38% retracement of the distance between waves 2 and 3 which is the case here. Furthermore, the bears who had shorted earlier and will get trapped which results in sharp up moves and bullish price movements and, which aligns with the current situation.

Currently, Elliott wave analysis, channeling techniques, and price action indicate that a bottom may have been established with the conclusion of wave 4.

If our assessment holds true, we could witness pronounced upside movements from this point onward.

The wave counts and levels are illustrated on the accompanying chart.

For a detailed explanation on Elliot waves basics, please refer to the following link:investopedia.com/terms/e/elliottwavetheory.asp


DISCLAIMER: It is important to note that the information provided in this analysis is intended solely for educational purposes. It is strongly advised to consult with a financial advisor prior to making any investment decisions. I cannot be held responsible for any financial losses that may occur.