Canara bank: Combining Diametric Pattern with Ichimoku cloud
May 03, 2023
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Elliott wave helps us to catch big moves and if we combine it with simple price action then it is possible to form powerful trade setups.
We published the following article on Canara Bank pre-market on 26th April 2023 in "The Financial Waves Short Term Update" which our subscribers receive pre-market every day.
Canara Bank Daily chart as on 26th April 2023 (Anticipated)
Canara Bank Daily chart as on 26th April 2023 (Happened)
Canara Bank Daily chart as on 3rd May 2023 (Happened)
WAVE ANALYSIS:
In the previous session, Canara bank opened on a flat note and during the day showed a good buying. At the end of the day prices closed with a decent gain of 1.57%.
On the daily chart, we have used Exponential moving average of 20 and 40 period. As we can see that EMA positive crossover has happened which is a positive signal. Along with this, price action is must to confirm the same. Also, prices are currently trading near its previous swing high which was near 314. Let’s see if we get a breakout or reversal back from it. As per wave perspective, c looks to be completed on the downside. However, we need a follow up action to confirm the same.
On the hourly chart, we have used Ichimoku cloud to understand overall price direction. As we can see that Prices are moving up by taking support of the base line (red). This suggests that any dip towards the base line i.e. towards 301 can be used as a buying opportunity. Prices are following a classic Diametric pattern, Wherein, last leg of the pattern is unfolding on the upside in form of wave g.
In short, Canara Bank looks sideways to positive. Use dips as a buying opportunity for a move towards 314 as long 298 holds on the downside.
Happened:
The wave counts have helped us to predict this move well in advance. After we published the report on 26th April 2023, the price kept moving higher and hit our target and recently made a high of 321.55.
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