Asian paints case study: using Elliott wave & price action.
Updated
Asian paints had corrected more than 16% in just a month.
After 101 days, the price is back to the strong support zone.
Price has made a kangaroo tail/hammer candlestick pattern on the support zone. 200EMA is also near to price.
Wave principle is also giving a similar explanation.
There are three confirmations to find the ending point of wave four.
1. Price can take 61.8% retracement of the 3rd wave at 2782, which is also a monthly support level.
2. Wave 4 can end nearby to support area.
3. sub-wave C of wave four is 161.8% of wave A at 2845.
If the price enters the parallel channel, we will get a candlestick pattern and support zone's demand pressure.
200 EMA is also supporting this statement, which is close to the price. Or we have to wait for the monthly support level where the price is getting support, but entry is not possible without any reversal signal.
If the price isn't giving any reversal signal, the price will fall continuously.
Violation: Wave 4 can never touch wave 1. (at 2692)
I will upload an intraday chart with entry and targets the Asian paints soon.
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A clear picture on the candlestick chart. Comment
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Trade closed: target reached
This was a great trade.
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