Wave (3) Awakening: Shri Jagdamba Polymers Ltd. AnalysisOverview:
Shri Jagdamba Polymers Ltd. has completed Wave (1) and Wave (2) in blue of Intermediate degree on the weekly chart. The stock now appears to be starting Wave (3) in blue, which should unfold into five subdivisions as Wave 1-2-3-4-5 in red of Minor degree . Currently, Wave 1 in red has finished its subdivisions as Wave ((i)) and Wave ((ii)) in black of Minute degree . Now, Wave ((iii)) in black of Wave 1 in red seems to be starting, indicating a bullish outlook.
Wave (3) Characteristics:
- Strong Impulse: Wave (3) is typically the most powerful and extended wave, characterized by strong upward momentum.
- Fibonacci Extension Target: If Wave (3) in blue reaches 161.8% of Wave (1)-(2) , the price target can be approximately 3300 .
- Subdivisions: Wave (3) subdivides into five smaller waves (1-2-3-4-5 in red of Minor degree), with each smaller wave further subdividing (e.g., Wave 1 in red subdivides into ((i)), ((ii)), ((iii)), ((iv)), ((v)) in black of Minute degree).
Current Technical Setup:
- Current Price: Observing the price action.
- Key Levels:
- Invalidation Level: 450 (marked as the low of Wave (2) )
- Fibonacci Extension Target: 3300
Technical Indicators:
- Wave ((iii)) Starting: The initiation of Wave ((iii)) in black of Wave 1 in red signals potential strong bullish momentum.
- Bullish Outlook: The completion of preliminary waves ((i)) and ((ii)) in black suggests that a significant upward move is likely ahead.
Risk-Reward Analysis:
- Risk: Low risk with the stop-loss set at 450 .
- Reward: High potential reward with a target of 3300 .
- Risk-Reward Ratio: Favorable due to the substantial upside potential and defined risk level.
- View: Long term Investment pick.
Trading Strategy:
- Consider entering a position as Wave ((iii)) in black of Wave 1 in red unfolds, with a stop-loss at 450 .
- Monitor for further confirmation of upward movement and add to positions as Wave ((iii)) progresses.
Conclusion:
Shri Jagdamba Polymers Ltd. is poised to start Wave (3) in blue of Intermediate degree , characterized by strong bullish momentum. The current setup indicates the start of Wave ((iii)) in black of Wave 1 in red, offering a compelling risk-reward opportunity. Monitoring the progress of these waves and the overall price action will be crucial for optimizing entry and exit points.
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The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Elliottwaveanalysisgbpusd
EWP: Will GBPUSD touch 1.400 before the next weekend?Price has made significant Low at 20th august,2021.
Extreme low has given us beautiful Impulsive structures.
Wave ((1))
Wave Nature: Motive wave
Type of motive wave: Impulse (Five waves)
Wave ((2))
Wave Nature: Corrective waves
Type of corrective pattern: Irregular or Expanded flat.
Retracement of wave ((2)) : 50% of wave ((1)).
Wave ((3))
Wave Nature: Impulse (3rd wave can only be an Impulse with 5 waves)
Extention of wave ((3)) :
At this motion, price is riding on sub-wave (3) of wave ((3)).
Wave has an extension of ((3)) 161.8%, but the party is not over yet.
We are to get waves (4) and (5) of wave ((3)). one can expect 2.618% of wave ((3)) and even more!
Sub-waves of wave ((3)) :
Wave (1) is an impulse.
Wave (2) is an irregular flat.
Wave (3) is an impulse.
Extention: 161.8% of wave 1
The price extension of wave (3) is 161.8%. If the price breaks the 1.39154 level without any correction, we will have a powerful extension.
Wave (4):
According to rules of alternation, if the second wave seems flat & time-consuming, then wave four can be shart and quick.
We may get a running triangle or a zigzag correction.
Common Retracement: 38.2% of 3rd wave at 1.38305
50% of 3rd wave at 1.38101
61.8% of 3rd wave at 1.37924
50% retracement for wave 4 is acceptable for two reasons:
1. An Important support level is the 1.38107 50% retracement level of Wave 3.
2. Wave 4 is more often complete nearby the sub-wave (4) of wave ((3)).
If the price breaks the hurdle line, we will have a violation of the rule. However, wave two can never overlap the starting point of wave 1.
Conclusion :
If the 3rd wave will crossover 161.8% of retracement extension without correction into wave (4), then we will have a powerful price extension for sub-wave (3) of wave ((3)) or after wave 4.
I will reveal the next move of GBPUSD in the short timeframe analysis soon. Therefore, stay connected.