KPIT TECH: Combining Rounding bottom with Elliott wave
Mar 27, 2023
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We published about KPIT TECH in February 2023 and predicted a possibility of good returns in the coming months in our Monthly Research report. Check out the research we had published on 22nd February itself – This stock has managed to hold its gain and gave more than 19% returns in 1 month of time and made a high of 913.90 levels.
While trading the market it is important to understand the behaviour of the market. You can also predict price moves in stock with high accuracy with the help of Elliott wave and Time cycle. Check out how we recently identified one such breakout in KPIT Tech. You can also use these to identify stocks with momentum for short-term trades.
KPIT Tech Weekly chart as on 22nd February 2023: (Anticipated)
KPIT Tech Weekly chart as on 27th March 2023: (Happened)
Wave Analysis:
Elliott Wave analysis: KPIT Tech is moving in classic Impulse manner. Prices have completed primary degree wave 4 and started wave 5 on upside. As shown in the weekly chart the prices have shown an excellent rise and are moving precisely by taking support of the trendline. KPIT Tech is moving in primary degree wave 5.
Indicator Analysis: The prices have currently started moving in form of wave 5 and have recently bounced from the Ichimoku cloud. This suggest that the overall trend looks still intact on the upside. Also, on the Weekly chart, breakout of the Rounding bottom has happened which is deemed to be a bullish signal. Along with this, price have bounced back on the upside by taking support of the cloud which suggest that any dips towards the cloud can be used as a buying opportunity.
Time Cycle: KPIT Tech is following with 40 Period Time cycles on the weekly chart. This cycle has been working exceptionally well in order to catch lows in every 40 weeks. The recent low which was formed on 11 July 2022 was also on this cycle and since then stock has showed a good rally. The next cycle is due later in April. 2023.
In a nutshell, Trend for KPIT Tech looks positive. Stock is trading near all-time high so one should avoid catching highs and should use dips towards 790 as a buying opportunity for a move towards 900. Whereas 750 can act as a near term support.
Happened
The stock moved as expected. Prices has bounced from important support levels of 750 and achieved our Target of 900. We have been able to capture this entire move of more than 19% with the help of simple chart pattern along with Elliott wave and Time cycle.
Become Market Wizard (BMW) – is comprised of Options Trading Using Technical Analysis (OTTA) which will cover Options Trading using Volume profile, Ichimoku Cloud, KST Time indicator, Breakout techniques with 5 Trade Setups Masterclass on 15th – 16th April and Master of Waves (MOW) – to combine Elliott wave, Neo wave, and Time cycles. This can be the best combination to Trade Futures and Options right from basic to advanced levels. Know more