BHEL : What is next?BHEL Stock Analysis
Entry Zone : ₹218–₹229 (Ideal buying range).
Targets :
First Target : ₹300–₹308.
Final Target : ₹350–₹368.
Stop Loss : ₹194 (Below the extended retracement zone).
Analysis Highlights:
The stock is in a corrective phase but shows potential for a strong rebound from key support zones.
Short-term resistance at ₹255–₹260. Breakout above this could lead to a rally.
Action Plan : Accumulate in the buy zone for swing trading with controlled risk and solid upside potential.
Deeper and Educational Insights
Elliott Wave Theory Application :
The stock is completing corrective Wave 4-wave pattern . This is followed by a impulsive Wave 3 , typically retracing a portion of the prior rally.
The retracement aligns with Fibonacci levels , highlighting ₹218–₹229 as a high-probability buy zone .
Key Levels to Watch :
Support Zones :
₹218–₹229: This is the primary retracement buy zone for a favorable risk/reward ratio.
₹152: The final support at the lower band of the correction zone on the weekly chart.
Resistance and Target Zones :
₹255–₹260: First resistance and liquidity zone. Expect price to pause or consolidate here.
₹300–₹308: First target zone, where partial profit booking is advisable.
₹350–₹368: Final target zone, marking a fresh high.
Risk Management :
Stop Loss : Place below ₹194 to limit downside risk. This aligns with the deep retracement zone and protects capital in case of extended corrections.
Entry Strategy :
Use staggered buying within ₹218–₹229. This method helps reduce risk exposure in case of volatility.
Market Psychology :
The current corrective phase represents profit-taking and demand generation . Once buyers regain momentum, the stock is likely to test higher resistance zones.
Why This Setup Works :
The retracement zone reflects institutional demand , and historical price action suggests strong support levels in this area.
The alignment with Fibonacci levels and Elliott Wave theory increases the probability of a successful trade.
Key Takeaways for Learning:
Always identify buy zones based on technical indicators like Fibonacci and chart patterns.
Use stop-loss orders to limit downside risk and protect capital.
Monitor resistance levels for partial exits and re-entry opportunities.
Conclusion :
This setup is a textbook example of combining Elliott Wave Theory with Fibonacci retracement. Traders can use this to plan entries, exits, and manage risks effectively. It’s a bullish scenario with clear targets and defined risk limits.
