Since peaking near 307.50, ONGC has been moving through a clear downward correction. On the 4-hour chart, this price action tracks a classic ABC Corrective Pattern.
Here is a quick look at where the stock stands within this structure and the key levels to watch next.
The Wave Count
The current downward structure breaks down into three distinct phases:
Support and Momentum
The price is currently trading around 259.70, sitting just above a long-term Major Support level at 258.50.
At the same time, the RSI (Relative Strength Index) has dropped to 26.83, indicating deeply oversold conditions. When a stock hits major structural support while momentum is this stretched, selling pressure often slows down, creating room for a potential bounce.
The Invalidation Level
The critical line in the sand for this entire setup is 256.65 (the 1.618 Fibonacci level).
Disclaimer: This post is for educational purposes only and is not financial advice. I am not a SEBI-registered analyst. Please do your own research and manage your risk carefully.
Here is a quick look at where the stock stands within this structure and the key levels to watch next.
The Wave Count
The current downward structure breaks down into three distinct phases:
- Waves A & B: The initial drop found a floor at 277.65, followed by a temporary bounce back up to 304.95.
- Wave C: We are now in the final leg of the decline. This leg is dividing into 5 smaller steps (labeled i to v). The price is currently sitting in the final step, Wave (v), which typically completes the entire pattern.
Support and Momentum
The price is currently trading around 259.70, sitting just above a long-term Major Support level at 258.50.
At the same time, the RSI (Relative Strength Index) has dropped to 26.83, indicating deeply oversold conditions. When a stock hits major structural support while momentum is this stretched, selling pressure often slows down, creating room for a potential bounce.
The Invalidation Level
The critical line in the sand for this entire setup is 256.65 (the 1.618 Fibonacci level).
- The Bullish View: As long as the price stays above 256.65, the structural pattern holds, and the expectation of a corrective bounce remains intact.
- The Bearish View: A decisive close below 256.65 completely invalidates this Elliott Wave count. It would signal that the downward momentum is stronger than expected and that the correction is extending deeper.
Disclaimer: This post is for educational purposes only and is not financial advice. I am not a SEBI-registered analyst. Please do your own research and manage your risk carefully.
Trade closed: stop reached
WaveXplorer | Elliott Wave insights
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📊 X profile: @veerappa89
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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.