Adani Enterprise – Elliott wave with Volume Profile, Big Traders Activity
Feb 15, 2023
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Adani group stocks collapsed post the report by Hindenburg just few weeks back.
Adani Enterprise formed a top much earlier than majority are aware of. Elliott wave along with Volume profile is suggesting one more leg on downside is still pending.
Adani Enterprise Daily chart:
Adani Enterprise hourly chart with Volume profile:
Adani group stocks have started correcting much earlier and not only on back of recent news. Adani Enterprise top was made at 4190 on 21st December 2022. It is only since 27th January 2023 that the downside momentum increased on back of the news. But the stock has been already under pressure since beginning of 2023. Post the crash in Adani Enterprise prices touched the low of 1017 levels and from there we have seen retracement of precise 38.2% on upside. This upside retracement is only a dead cat bounce or wave 4 pullback and one leg in form of wave 5 is pending on downside that can again take this stock towards 1380 or lower levels. So, it is best to avoid investment in even the group companies as more pain is left and it is still not out of the woods.
Elliott wave – Adani Enterprise seems to be forming wave iv after completing wave iii on the downside near 1017 levels. This wave iv is further subdividing into Zigzag correction and as of now prices are in wave c of iv. So, post one minor push on upside we can start seeing stock drift lower again towards 1300 or lower levels. As wave iii was extended wave v can be truncated given deep wave iv formation.
Volume profile – Volume Point of Control is at 1770 levels, this is the area where major volumes are taking place in this stock. Given the wave count this seems to be distribution and not accumulation at these levels. So the zone of 2000 – 1500 is the range we can expect stock to trade which is within high volume zone.
In a nutshell, by applying Elliott wave along with Volume profile we can clearly see probable path of Adani Enterprise despite of all the news floating around. So, over short term 2000 – 1500 is range for the stock and eventually we can see it back towards 1300 levels in form of wave v.
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