HCL TECH: Price targets using Elliott wave!
Dec 26, 2023
HCL TECH: Price targets using Elliott wave!
IT continued to outperform and we have been Bang on in anticipating up move in HCL Tech.
We published detailed research on HCL Tech on 18th September 2023 and we achieved our target level as our studies showed. Below is the chart we published in our monthly report, “The Financial Waves Monthly Update”.
HCL Tech Weekly Chart: (Anticipated as on 18th September 2023)
Wave analysis as on 18th September 2023
Elliott Wave analysis: As shown in the weekly chart the prices have shown an excellent rise and are moving precisely within the multi-year channel. HCL Tech is moving in primary degree wave (5) and now we are seeing the rally in the form of intermediate wave iii. The third wave is usually the largest, most violent. Wave iii has retraced more than 78.6% of prior wave ii.
Indicator Analysis: A Moving average offers a strong support during the dips during rallies. We have found the 100-week EMA, which has successfully supported rallies in the past. As important lows have occurred near this average. So, dip towards it can be used as an excellent buying opportunity. As recently in month of July, when prices moved toward the rising 100-week EMA, stock shown a strong comeback from it. If a similar opportunity arises in the future one can use it as an added advantage to ride the trend.
Time Cycle: On the weekly chart, HCL Tech is following with 82 Period Time cycles. This cycle has been incredibly effective at catching lows every 82 weeks. The stock has seen a strong rally from the Covid 2020 bottom, which was also on this cycle. Recently prices made low near our cycle a bounced back on the upside precisely. During last week cycle has turned on to positive as prices gave a break above 1171 which was a swing high.
Time and Wave theory along with price action all are in sync and giving us hints of more possible up move in this stock in coming sessions.
In short, trend for HCL Tech is positive and it can continue to move higher towards 1400 levels followed by 1450. If Price dips towards the trendline which comes near 1200 then it will provide a classic buying opportunity. While on the downside 1171 can act as a near term support which is a cycle low.
HCL Tech (Happened as on 26th December 2023)
Happened
Post recommending this stock, prices moved as expected. After a dip, stock showed a good rally and achieved our target of 1450. We have seen movement even beyond it as prices made high of 1509. Prices from the lows moved more than 24% within less than 3 months of span.
The current rise is in form of iii. For now, one can use buy on dips approach to ride the trend as long as 1350 holds on the downside.
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