A possible cup and handle formation may be developing on the weekly chart of Hero MotoCorp.
The rise from 2146.85 to 6388.50 appears to have unfolded as a clear impulsive structure, where lower degree wave (3) topped near 6246.25, followed by wave (4) near 3344, and the higher-degree wave 3 terminated at 6388.50. This broader structure forms the cup portion of the pattern.
Typically, cup patterns tend to form a rounded bottom, however in this case the base appears more V-shaped, which can sometimes occur in strong trending markets where corrections unfold sharply rather than gradually.
At the 6388.50 high, the RSI moved into the overbought region without showing clear exhaustion, supporting the idea that trend strength remains intact and that a wave 5 continuation could still be pending.
The ongoing decline from 6388 is currently unfolding inside a descending channel, which may represent the handle portion of the structure.
Price is presently hovering near the 0.236 Fibonacci retracement of the entire major rally from wave 2 to wave 3. While this shallow retracement may hold, a deeper pullback toward the 0.382 Fibonacci level near 4768 cannot be ruled out.
From a trading perspective, a weekly break and close above the descending channel could act as confirmation that the handle is complete and that the next leg of the trend may begin.
The RSI holding above the mid-50 region also indicates that momentum remains constructive despite the ongoing consolidation.
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
The rise from 2146.85 to 6388.50 appears to have unfolded as a clear impulsive structure, where lower degree wave (3) topped near 6246.25, followed by wave (4) near 3344, and the higher-degree wave 3 terminated at 6388.50. This broader structure forms the cup portion of the pattern.
Typically, cup patterns tend to form a rounded bottom, however in this case the base appears more V-shaped, which can sometimes occur in strong trending markets where corrections unfold sharply rather than gradually.
At the 6388.50 high, the RSI moved into the overbought region without showing clear exhaustion, supporting the idea that trend strength remains intact and that a wave 5 continuation could still be pending.
The ongoing decline from 6388 is currently unfolding inside a descending channel, which may represent the handle portion of the structure.
Price is presently hovering near the 0.236 Fibonacci retracement of the entire major rally from wave 2 to wave 3. While this shallow retracement may hold, a deeper pullback toward the 0.382 Fibonacci level near 4768 cannot be ruled out.
From a trading perspective, a weekly break and close above the descending channel could act as confirmation that the handle is complete and that the next leg of the trend may begin.
The RSI holding above the mid-50 region also indicates that momentum remains constructive despite the ongoing consolidation.
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
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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.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
Related publications
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.