Infosys completed larger degree Impulse Wave during Dec 24 and ever since has been undergoing larger degree Corrective Wave. The correction is a Zigzag which is a 5-3-5 pattern. The first five are down moves called as Wave A, followed by 3 way up movement (counter waves) called Wave B and then again followed by 5 wave down movement called Wave C. This can happen over a long period of time, however pattern can be confirmed by lower low formations.
Why buy now?
1) It now appears that Wave A of the zigzag is completing as there is a confluence of critical ratios of the subwave counts of W3 and W5.
2) There is a RSI divergence formation between 24 Feb to 17 Mar down move (stock moved lower, RSI moved higher).
2) More importantly it coincides with price support from W4 formation of the impulse which is a very important support zone.
3) Confluence of fibo and price support and RSI divergence makes it a compelling combination.
If stock moves lower today (19 March 26), BUY ONLY IF IT SUSTAINS ABOVE 1225 (THIS IS VERY IMPORTANT). Stop loss 1190 levels.
Expect Wave B to be a good up move. Target will be updated as the wave progresses. This can take few weeks.
Happy Trading.
Why buy now?
1) It now appears that Wave A of the zigzag is completing as there is a confluence of critical ratios of the subwave counts of W3 and W5.
2) There is a RSI divergence formation between 24 Feb to 17 Mar down move (stock moved lower, RSI moved higher).
2) More importantly it coincides with price support from W4 formation of the impulse which is a very important support zone.
3) Confluence of fibo and price support and RSI divergence makes it a compelling combination.
If stock moves lower today (19 March 26), BUY ONLY IF IT SUSTAINS ABOVE 1225 (THIS IS VERY IMPORTANT). Stop loss 1190 levels.
Expect Wave B to be a good up move. Target will be updated as the wave progresses. This can take few weeks.
Happy Trading.
Trade closed manually
Stock did not form larger Wave B due to persistent selling. Trade closed at purchase price.
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.