SBIN : at Wave C completion zoneSBIN Analysis (20th Dec 2024)
The chart of SBIN (State Bank of India) illustrates an extended retracement to mitigate liquidity, a failed breakout (BO), and a corrective wave completion. Let us dive into a step-by-step educational breakdown of actionable levels.
Current Structure:
The price has recently formed a corrective wave structure (A-B-C) and is trading near a potential demand zone around 818-834.
The first target zone lies between 850-852. Further breakout could lead to an extended target between 900-912.
The stop-loss is below 814, where failing the deep retracement may result in bearish continuation.
Action Plan:
Buying Opportunity: Consider entering near 818-834, as this aligns with the golden retracement zone. This is a low-risk entry given the confluence of previous support and corrective wave completion.
Targets: Book partial profits around 850-852. If momentum sustains, trail stop-loss to 845 and aim for 900-912 as the extended target.
Stop Loss: Place a stop-loss below 814 to manage risk. A failure here could invalidate the setup, resulting in further downside risk.
Risk-Reward Ratio: Buying around 830 with a target of 850 (initial) and 900 (extended) offers a risk-reward ratio of approximately 1:3, making it a favorable trade setup.
Key Educational Note:
Green trendlines denote bullish movement, while red illustrates potential bearish risks. The yellow trends indicate a sideways range, highlighting consolidation zones.
Disclaimer: This is not financial advice. Always consult with a SEBI-registered advisor before trading. Like and share if you find this analysis helpful!
