BSE on point with Price action and Elliott wave!
Dec 17, 2024
Is it possible to capture massive moves in stocks using simple Price action with Elliott wave? Elliott wave theory helps to analyse market trends and identify trading opportunity. If one combines it with price action then it helps to determine powerful trade setups with highest accuracy.
Check out how we selected BSE which has rallied more than 3.50% since 13th December 2024. We published the following research on BSE pre-market on 13th December in the "Vayu Momentum Report” which our subscribers receive pre-market every day.
BSE Daily Chart: Anticipated as on 13th December 2024
Wave Analysis as on 13th December 2024:
On the daily chart, BSE is trading within an upward-sloping channel since more than a year. Prices have protected its prior day’s low since 4th December and has made a fresh high at 5717 levels which keeps the daily bias in favor of the bulls. Prices have recently given a breakout on the upside of a range of 4000 levels to 5000 levels and have surged more than 14% since. Also, RSI is trading near its overbought zone at 74 levels which suggests that instead of catching tops, use any decline as an opportunity to enter into the trend. On the downside, the nearest support is at 5430 levels.
As per wave perspective, wave ii of wave 5 got completed on the downside and wave iii of wave 5 is ongoing on the upside, which is considered to be the strongest wave as per guidelines. Also, wave iii has retraced more than 50% of wave i.
In nutshell, the current trend for BSE is bullish. Buy on dips seems to be a prudent strategy which can led to a trending move towards 5780 followed by 5980 levels.
Trade Setup for Intraday Futures – Long positions can be created if stock moves towards 5590 and breaks above 5650 with 5620 as stoploss and target of 5680 followed by 5730.
Trade Setup for Positional Futures - Long positions can be created if stock moves towards 5590 and breaks above 5650 with the stoploss of 5600 as stoploss and target of 5750. (One can book part profit near 5670-5690 levels and trail stoploss to cost.)
BSE 15 Min chart: Happened as on 17th December 2024
Happened- After we published the report, BSE moved as expected. After a dip, stock moved up and achieved both our given targets in Futures and options in just 2 trading sessions and made a fresh high of 5786 levels and surged by more than 3.50%.
We successfully captured this up move with the help of simple Elliott wave. It works well on stocks as well as on indices. One can easily identify reversals or path ahead by combining it with price action.
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