CNXIT (Nifty IT) Long, INFY/ BSOFTBat Pattern:
It starts with a bullish XA move. AB is then bearish . BC is bullish , and CD is bearish again.
XA: This can be any price activity on the chart. There is no specific price movement in Bat chart formation.
AB: The AB move should be between 38.2 to 50 % Fibonacci of XA.
BC: The BC move should finish between 38.2% and 88.6% Fibonacci of AB.
CD: Ideally point D should represent 127% to 161.8% Fibonacci extension of BC Leg. Look for entry at point D once you see the trend reversal.
Profit Target: As mentioned in the chart.
Stop Loss : should be just below X with a support channel.
As you can see from the above chart the NIFTY IT ( CNXIT ) has completed the bat pattern and is moving up optimistically We should see the price touch target 1. Since it's on a corrective wave on Elliot's principle Target 1 is most likely to be completed. MACD has crossed the signal line on a weekly timeframe .
INFY ( Infosys ) & BSOFT (BirlaSoft) are on the same trend line as the IT index.
Disclaimer: “The above is an idea only and not any kind of any financial advice so please do your own DD (Due Diligence) before any kind of investment”.
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