Adani Enterprises completed an intermediate-degree Wave 5 on 21 Dec 2022 and has since been undergoing a corrective phase, forming a classic zigzag, with Wave A and Wave B already complete. The sharp decline following the Jan 2023 Hindenburg report merely accelerated the Wave A that was already in place.
The corrective pattern since the top is best classified as a zigzag (A-B-C).
- Wave A unfolded as a 5-wave impulse, with Wave (iii) showing a clear extension (SW5 extension at 1.618x of SW1-2) and Wave (v) concluding at ~38.5% of Wave (iii) on 28 Feb 2023.
- Wave B retraced ~86% of Wave A, which is insufficient for a flat correction and hence confirms a zigzag structure.
- Wave C is currently in formation.
As per Elliott Wave Principle, Wave C of a zigzag must at least equal Wave A, implying the possibility of a lower low or, at best, an equal low relative to the termination of Wave A.
The sharp fall on 23 Jan 2025, following news related to US SEC proceedings, aligns with this ongoing Wave C decline. From a structural standpoint, further downside remains open unless the wave count is invalidated.
Strategy: Sell on rallies, keeping the broader corrective structure in mind.
Order cancelled
Carried thorough review of Adani Enterprises. It is highly likely that the corrective structure reviewed above is a flat (3-3-5) structure (and not a zigzag) for Wave IV formation following major primary Wave 5 / Wave (III) completion at 1x of the previous up move on 16 Nov 22. The subsequently formations were Wave A and Wave B of a Flat and Wave C got prolonged due to the Hindenburg report that was subsequently published on 24 Jan 2023. Further Wave (IV) did not touch / enter into Wave (I) which formed on 20 Feb 2020 and hence is a valid wave count. Thus Stock is forming larger degree Wave (V) and hence is a buy and not a sell on rallies. Updated chart attached.
ChartTheWave |
t.me/chartthewave
This channel is a common forum for "Elliott Wave Principle" enthusiasts, learners and practitioners. We aim to build a team of traders who practice EWP for common benefit; co-learn, teach, share, validate and benefit.
t.me/chartthewave
This channel is a common forum for "Elliott Wave Principle" enthusiasts, learners and practitioners. We aim to build a team of traders who practice EWP for common benefit; co-learn, teach, share, validate and benefit.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
ChartTheWave |
t.me/chartthewave
This channel is a common forum for "Elliott Wave Principle" enthusiasts, learners and practitioners. We aim to build a team of traders who practice EWP for common benefit; co-learn, teach, share, validate and benefit.
t.me/chartthewave
This channel is a common forum for "Elliott Wave Principle" enthusiasts, learners and practitioners. We aim to build a team of traders who practice EWP for common benefit; co-learn, teach, share, validate and benefit.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.