Technical Analysis: Price Breakout and BeyondHello Friends,
Welcome to RK_Chaarts,
Let's try to analyze a stock from the FMCG sector, "Dabur India Limited".
Elliott Wave perspective.
We can see that the correction is completed, which is the IVth wave of the monthly time frame of cycle degree in Red. Now, possibly the impulse wave Vth had start unfolding. If we go inside that, we'll see its five sub-divisions in black, labeled ((1))-((2))-((3))-((4))-((5)) of primary degree.
Possibly, wave ((1)) has started unfolding, and within wave ((1)), we'll see five sub-divisions in blue, which is the intermediate degree. Within this, waves (1) and (2) looks complete, and wave (3) has started, which has also broken out of the curve line.
Invalidation level
If our wave counts are correct, the bottom level of wave IV, which is 433, will be our main invalidation level. If the price goes below this level, it will trigger the invalidation level. If that happens, we'll need to re-analyze the chart from a wave count perspective.
But if the price stays above this invalidation level, then our view, which is based on the analysis, will remain bullish, and the chart will remain bullish.
Projected Target
As per Elliott wave theory, it can show new ATH in Long Term, only if Invalidation level is not breached.
Breakout with good Intensity of Volumes
The breakout has a good intensity of volume. The volume in the breakout candle is looking very good, which is 3-4 times higher than the average. This means that market participation is very good during this breakout. So, Conviction is high on this breakout.
We can clearly see that the price has closed above the 50 Exponential Moving Average (EMA), 100 EMA, and 200 EMA, which is a very good sign that the price has overcome all these hurdles along with Breakout.
Now, if there are any hurdles above, they could be the 200 EMA on the weekly time frame, which is coming near the level of 529, and the 50 EMA on the monthly time frame, which is coming near the price of 527. Currently, the price is trading around 513.
Once it crosses 529 or 530, it may show even more strength after that.
Dow Theory Trend confirmation
Based on Dow Theory, if we observe, the price which was falling and making lower highs and lower lows, has now started forming a Higher High and Higher Low pattern on the daily time frame, which is again a sign of bullishness.
Standard Deviation crossed
Price is trading above the mid-Bollinger Band on the weekly time frame, i.e., in the bullish territory. On the daily time frame, Prince has also crossed the upper Bollinger Band, meaning it has broken out and is expanding above the upper Bollinger Band, which is a bullish sign
Supporting Indicators
On the daily time frame, a very good breakout is visible inside RSI, and is also moving above 72. Additionally, on both the daily and weekly time frames, the MACD has given a positive crossover.
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My studies are for educational purpose only.
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Hope this post is helpful to community
Thanks
RK💕
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The analysis and discussion provided on in.tradingview.com/u/RK_Chaarts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts 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_Chaarts 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.
