🔍 Pattern Identified:
Butterfly Bearish Harmonic Pattern complete near the top.
The right shoulder of the pattern has shown Positive Divergence:
On Awesome Oscillator (AO) — price made higher highs while AO made lower highs.
On Volume — clear divergence showing weakening momentum even as price tried to rise.
These are strong early warning signals that smart money is exiting.
🧠 Technical Confluence:
📉 Bearish Divergence: Suggests exhaustion of bullish momentum.
📐 Harmonic Pattern Target: Typically, butterfly patterns suggest:
Target 1 at 38.2% retracement of leg CD.
Target 2 at 61.8% retracement or more — you have identified this beautifully with a likely target near ₹3800.
📊 Impulse Wave Forecast:
Your projected 5-wave Elliott impulse indicates a sharp, fast corrective leg is expected.
Wave I and III are typically the strongest — if wave I begins soon, the fall could be steep.
🎯 Key Levels:
Immediate Resistance: ₹4180–4200 zone (top of butterfly).
Breakdown Trigger Zone: Below ₹4100–4080 can accelerate fall.
Support Levels:
₹4000 (psychological & previous structure)
₹3900 (near wave iii completion)
Final Target Zone: ₹3800 – aligns with the butterfly harmonic projection.
⏱ Time Expectation:
You mentioned 2–3 days for the full fall — this is reasonable given:
"Volume divergence indicates smart selling is already happening.
Once the neckline or structure breaks, algo selling may kick in, pushing the price rapidly toward the target."
📌 Conclusion:
Bearish bias is very strong based on pattern + divergence.
Expecting a sharp move toward ₹3800 in a short period.
High probability trade setup with clearly defined entry, stop-loss, and target.
⚠️ Disclaimer:
This is not investment advice. The analysis is for educational purposes only. Please consult your financial advisor before making any trading or investment decisions. Trading in the stock market involves risk, and you should trade or invest only based on your own judgment.
Butterfly Bearish Harmonic Pattern complete near the top.
The right shoulder of the pattern has shown Positive Divergence:
On Awesome Oscillator (AO) — price made higher highs while AO made lower highs.
On Volume — clear divergence showing weakening momentum even as price tried to rise.
These are strong early warning signals that smart money is exiting.
🧠 Technical Confluence:
📉 Bearish Divergence: Suggests exhaustion of bullish momentum.
📐 Harmonic Pattern Target: Typically, butterfly patterns suggest:
Target 1 at 38.2% retracement of leg CD.
Target 2 at 61.8% retracement or more — you have identified this beautifully with a likely target near ₹3800.
📊 Impulse Wave Forecast:
Your projected 5-wave Elliott impulse indicates a sharp, fast corrective leg is expected.
Wave I and III are typically the strongest — if wave I begins soon, the fall could be steep.
🎯 Key Levels:
Immediate Resistance: ₹4180–4200 zone (top of butterfly).
Breakdown Trigger Zone: Below ₹4100–4080 can accelerate fall.
Support Levels:
₹4000 (psychological & previous structure)
₹3900 (near wave iii completion)
Final Target Zone: ₹3800 – aligns with the butterfly harmonic projection.
⏱ Time Expectation:
You mentioned 2–3 days for the full fall — this is reasonable given:
"Volume divergence indicates smart selling is already happening.
Once the neckline or structure breaks, algo selling may kick in, pushing the price rapidly toward the target."
📌 Conclusion:
Bearish bias is very strong based on pattern + divergence.
Expecting a sharp move toward ₹3800 in a short period.
High probability trade setup with clearly defined entry, stop-loss, and target.
⚠️ Disclaimer:
This is not investment advice. The analysis is for educational purposes only. Please consult your financial advisor before making any trading or investment decisions. Trading in the stock market involves risk, and you should trade or invest only based on your own judgment.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.