Charting the Future: An Elliott Wave ApproachTechnical Analysis of Rajesh Exports Using Elliott Wave Theory
Monthly Time Frame Analysis
Elliott Wave Count and Structure:
- The monthly chart of Rajesh Exports shows a clear Elliott Wave pattern, suggesting the completion of a corrective wave (C) of a larger degree wave ((2)) in Black, implying that a new bullish impulse is likely to begin wave ((3)) in Black.
- The recent price action indicates the end of Wave (C), part of a larger correction that followed a significant impulse wave (5) earlier of wave ((1)) in Black.
- This suggests that the stock is about to start a new bullish cycle, labeled as Wave (1) in Blue of a new impulse higher Primary degree wave ((3)) in Black.
Bullish Divergence:
MACD: The price shows hidden bullish divergence with the MACD, as the MACD line forms higher lows while the price makes lower lows on Monthly time frame.
RSI: Similar hidden bullish divergence is observed with the RSI too on monthly time frame, reinforcing the bullish outlook.
Daily Time Frame Analysis
Bullish Divergence:
MACD: The price shows bullish divergence with the MACD, with the MACD line forming higher lows while the price forms lower lows.
RSI: The RSI also shows bullish divergence, adding further weight to the bullish scenario.
Trigger Point:
Trendline Breakout:
The daily chart indicates a trendline breakout accompanied by a significant increase in volume. This breakout suggests a strong bullish sentiment and confirms the start of a new upward trend.
Invalidation Level:
The invalidation level for this bullish scenario is set at 261. If the price falls below this level, the bullish wave count would be invalidated.
Targets:
According to Elliott Wave Theory, the third wave (3) is typically the most powerful. Using the Fibonacci extension, the 161.8% target of Wave (1) places the possible price target near or above 1800.
Summary
Elliott Wave Count: Indicates a potential start of a new bullish impulse wave.
Bullish Divergence: Both MACD and RSI on the daily and monthly charts show bullish divergence.
Trendline Breakout: Confirmed with high volume, suggesting strong upward momentum.
Invalidation Level: 261
Target: 161.8% Fibonacci extension of Wave (1) projects a target near or above 1800.
The overall analysis suggests that Rajesh Exports is poised for a significant upward movement, with strong bullish indications from both the Elliott Wave counts and technical indicators.
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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.
