Long
Amagi Media Labs – Has the First Impulse Wave Reached Maturity?
ChartTheWave IPO Watch (II)
Amagi Media Labs, one of Bengaluru's unicorn startups, is a cloud-native software company that provides technology solutions for television broadcasters and streaming platforms worldwide. Since its listing, the stock has appreciated by approximately 120%. Let's analyse its current structure using the Elliott Wave Principle.
Wave Structure
Wave 1
Developed as a clean five-wave impulse , completing on 6 May 2026.
Wave 2
Corrected as a simple ABC structure.
Retraced approximately 38.2% of Wave 1 before completing on 22 May 2026.
Wave 3
Developed into an extended impulse , with Sub-wave (iii) also extending internally.
Achieved approximately 1.414× the length of Wave 1 before peaking on 29 June 2026.
Wave 4
Corrected to the 1.0 Trend-Based Fibonacci Extension (TBFE) level of Wave 1, where it found support before resuming the uptrend.
Wave 5
Is unfolding as a smaller five-wave impulse.
Based on the current structure, the move appears to have potentially completed near:
61.8% of the combined length of Wave 1 to Wave 3, and
78.6% of the length of Wave 3.
The internal wave subdivisions are consistent with a completed impulse.
Additional Observation
The RSI is showing bearish divergence, indicating that momentum has weakened despite the recent price highs.
Conclusion
Based on the current Elliott Wave structure and momentum characteristics, the first impulse wave appears to be nearing completion or may already have completed. If this interpretation remains valid, a corrective phase should be expected before the next larger-degree advance begins.
For investors who participated in the move from lower levels, this could be an appropriate stage to review positions and consider partial or full profit booking based on their individual investment strategy and risk tolerance, rather than assuming the trend will continue uninterrupted.
Short
XAUUSD: Awaiting Wave 5 Buy SetupGold is showing a strong bullish continuation after breaking above the previous resistance structure. From Kelly’s view, the market has already built a clear recovery wave, and the current price action suggests that XAUUSD may only need one corrective pullback before continuing higher into the next Elliott Wave target.
The key idea is simple: gold is bullish, but the best setup is still to wait for a clean buy zone reaction instead of chasing after a sharp rally.
⟡ Market structure
The chart shows gold recovered strongly from the rising support area and pushed through the previous resistance near 4,110–4,120. This breakout is important because the zone that acted as strong resistance earlier may now become a support base if price retests it.
Gold is currently trading around 4,171 after a sharp upside move. Because price has already moved strongly, a short-term correction is normal. The key area to watch is the 4,110–4,120 zone, marked as the Buy wave 5 area.
If buyers defend this zone, gold may continue higher towards the Fibonacci 1.618 target area around 4,220–4,225, where the chart marks the possible end of wave 5.
➤ Key levels
◌ 4,110–4,120: Buy wave 5 zone and key retest area
◌ 4,160–4,175: current price reaction area
◌ 4,220–4,225: End wave 5 / Fibonacci 1.618 target
◌ 4,060–4,075: lower support if correction becomes deeper
◌ Below 4,060: area where the bullish setup starts to weaken
◌ Above 4,225: bullish extension zone if momentum remains strong
⌁ Elliott Wave view
From an Elliott Wave perspective, gold appears to be forming a bullish 5-wave structure after the previous correction ended near the lower trendline.
Wave 1 created the first recovery leg from the base.
Wave 2 pulled back but respected the bullish structure.
Wave 3 pushed strongly higher and broke through resistance.
Wave 4 may now form as a controlled correction back towards 4,110–4,120.
If this zone holds, wave 5 may continue towards 4,220–4,225.
This is why Kelly would not buy aggressively at the current high. The better plan is to wait for wave 4 to finish, then look for confirmation that wave 5 is starting.
▸ Trading scenario
Preferred scenario: wait for gold to correct into the buy zone and show bullish confirmation.
Entry zone: 4,110–4,120 if bullish confirmation appears
Stop loss: below the confirmed wave 4 low or below 4,060
Take profit 1: 4,175
Take profit 2: 4,200
Take profit 3: 4,220–4,225
Alternative scenario: if gold breaks below 4,060 with strong bearish pressure, the bullish wave 5 setup weakens. In that case, price may return to a deeper support area before forming a new recovery structure.
⌁ Kelly’s view
For Kelly, the bullish structure is still strong, but price is now close to an upper reaction area. That means patience is important.
The cleaner plan is to wait for a pullback into 4,110–4,120. If buyers defend this zone, gold may continue the next bullish wave towards the Fibonacci target above.
Gold is still in a bullish Elliott structure.
If the buy zone holds, wave 5 may continue towards 4,220–4,225.
Share your view below. 
Long
XAUUSD: Wave 4 correction before Wave 5.Gold is showing a bullish recovery structure after reacting strongly from the lower support area. From Kelly’s view, the current chart suggests that XAUUSD is now moving through wave 4 correction, and if this pullback holds above support, the next bullish wave may continue towards the Fibonacci resistance zone.
The key idea is simple: gold is still building an upward structure, but buyers need to defend the wave 4 zone before wave 5 can develop cleanly.
⟡ Market structure
The chart shows gold recovered from the lower area near 4,020 and created a short-term bullish sequence. Price is now trading around 4,057 after rejecting slightly from the 4,070–4,080 area.
This pullback does not break the bullish structure yet. Instead, it looks like a normal wave 4 correction inside the current Elliott setup.
The important support zone is around 4,045–4,052. If gold holds this area and forms bullish confirmation, price may continue higher towards 4,067, 4,078, and the main wave 5 completion zone near 4,105–4,110.
➤ Key levels
◌ 4,045–4,052: wave 4 buy zone and short-term support
◌ 4,057: current price reaction area
◌ 4,067: first resistance checkpoint
◌ 4,078–4,088: strong Fibonacci resistance area
◌ 4,105–4,110: end wave 5 target zone
◌ Below 4,030: area where the bullish setup starts to weaken
⌁ Elliott Wave view
From an Elliott Wave perspective, gold may be forming a bullish 5-wave recovery after the previous bearish structure slowed down.
Wave 1 created the first recovery push from the low.
Wave 2 corrected but held above the base.
Wave 3 pushed price into the 4,067–4,078 resistance area.
Wave 4 is now likely forming as a controlled pullback near 4,045–4,052.
If this zone holds, wave 5 may continue towards 4,105–4,110.
The downtrend trendline above is still important. A clean break above that trendline would make the bullish continuation stronger, while rejection near the line may create short-term volatility.
▸ Trading scenario
Preferred scenario: wait for gold to hold the wave 4 zone and show bullish confirmation.
Entry zone: 4,045–4,052 if bullish confirmation appears
Stop loss: below the confirmed wave 4 low or below 4,030
Take profit 1: 4,067
Take profit 2: 4,078–4,088
Take profit 3: 4,105–4,110
Alternative scenario: if gold breaks below 4,030 with strong bearish pressure, the bullish wave 5 setup weakens. In that case, price may need to retest the lower base around 4,020 before building a new recovery structure.
⌁ Kelly’s view
For Kelly, gold is still holding a bullish short-term structure, but the market is currently in the decision zone. The best plan is not to chase price near resistance, but to wait for the wave 4 pullback to complete.
If buyers defend 4,045–4,052, gold may continue into wave 5 and target the Fibonacci resistance above.
Gold is correcting inside a bullish Elliott setup.
If wave 4 holds, the next move may continue towards 4,105–4,110.
Share your view below. Long 
TITAN 1. Fundamental Outlook: Has Titan Given Its Full Run, or Is There Room Left?
While Titan has already delivered legendary compound returns over the decades, its fundamental business story is far from exhausted.
Why the Fundamental Runway Remains Strong
Unorganized-to-Organized Shift: The Indian jewellery market is still roughly 60–65% unorganized. Tanishq, Mia, and Zoya have immense headroom to capture market share from local unorganized jewelers as consumers demand certified purity and transparent pricing.
Aggressive International Expansion: Titan is actively expanding into international geographies (GCC/Middle East, North America, Southeast Asia) to cater to both the Indian diaspora and global consumers.
Omnichannel Growth (CaratLane): CaratLane continues to post robust 40%+ year-on-year growth, capturing younger, digital-first buyers.
Incubating New Engines: Beyond watches and jewellery, Titan is building long-term growth engines in sarees and ethnic wear (Taneira), eyewear (Titan Eye+), and fragrances/lifestyle (SKINN, IRTH).
Market Nuance: Because Titan is widely recognized as a high-quality compounder, its stock often trades at premium valuation multiples. In the short term, earnings calls or fluctuations in gold prices can cause price consolidation. But over 5 to 10-year horizons, its underlying earnings growth remains robust.
2. Made in India: A Titan Story & The Power of Ethos
The web series Made in India: A Titan Story (starring Jim Sarbh as Xerxes Desai and Naseeruddin Shah as JRD Tata) captures the essence of what makes the company special. 
Long
Long
XAUUSD: Bullish wave structure formingGold is trying to rebuild bullish momentum after defending the lower reaction area near 4,050. From Kelly’s view, the chart is showing an early Elliott recovery structure, but buyers still need confirmation above the short-term resistance before the next upside wave becomes stronger.
The key idea is simple: gold is recovering, but the clean bullish continuation needs price to hold above support and confirm the next wave 4 base.
⟡ Market structure
The chart shows gold previously rejected from the 4,160 area and moved lower inside a corrective structure. However, price has now reacted from the lower base and started forming a new short-term bullish sequence.
Current price is around 4,065. The nearest support is around 4,048–4,055, where buyers have already shown reaction. If gold continues to hold above this zone, the next important area to watch is the 4,085–4,090 zone marked as “Buy wave 4 after the price confirms.”
A clean break and hold above this zone may open the path towards the 4,110–4,115 resistance first. If bullish momentum expands, gold may continue towards the larger wave 5 target around 4,160–4,165.
➤ Key levels
◌ 4,048–4,055: short-term support and current recovery base
◌ 4,065: current price reaction area
◌ 4,085–4,090: buy wave 4 confirmation zone
◌ 4,110–4,115: nearest resistance and breakout checkpoint
◌ 4,160–4,165: major resistance and possible wave 5 target
◌ Below 4,040: area where the bullish setup starts to weaken
⌁ Elliott Wave view
From an Elliott Wave perspective, gold may be forming a new bullish 5-wave structure after the recent correction.
Wave 1 has started from the lower base.
Wave 2 created a pullback but did not fully break the recovery structure.
Wave 3 may develop if price breaks above 4,085–4,090 with strength.
Wave 4 may later retest that area as support.
Wave 5 could then extend towards 4,160–4,165, where the chart marks the upper target zone.
This is why Kelly is watching confirmation carefully. The bullish view is improving, but the market still needs to prove that the recovery is not only a small corrective bounce.
▸ Trading scenario
Preferred scenario: wait for gold to confirm above the 4,085–4,090 area, then look for bullish continuation.
Entry zone: 4,085–4,090 after confirmation or retest
Aggressive buy zone: 4,048–4,055 only if bullish reaction appears
Stop loss: below the confirmed swing low or below 4,040
Take profit 1: 4,110–4,115
Take profit 2: 4,160–4,165
Take profit 3: higher only if wave 5 breaks with strong momentum
Alternative scenario: if gold breaks below 4,040 with strong bearish pressure, the bullish Elliott structure weakens. In that case, price may return to a deeper support area before forming a new recovery base.
⌁ Kelly’s view
For Kelly, gold is showing a bullish recovery structure, but confirmation is still the main condition. The strongest setup is not to chase the current price, but to wait for price to reclaim the wave 4 confirmation zone.
Gold is building a bullish Elliott structure.
If buyers hold support and confirm above 4,085–4,090, the next wave may continue towards 4,110 and 4,160.
Share your view below. Long 
Short
Copper (W): Multiple 1-2 Bullish Setup Suggests Higher PriceCopper continues to respect a bullish Elliott Wave structure on the weekly timeframe.
My preferred count indicates that the market has already completed a series of Wave (1)-(2) formations. These repeated 1-2 structures are often seen before a strong impulsive advance, as they represent the market building energy before the larger Wave 3 unfolds.
### Wave Count
* The 2020 low marked the beginning of a new bullish cycle.
* Wave (1) completed in early 2021, followed by a corrective Wave (2).
* From the 2024 low, another smaller degree Wave 1 and Wave 2 have completed.
* Price has once again formed an additional 1-2 sequence , keeping the bullish structure intact.
This creates multiple nested 1-2 counts , which is one of the strongest Elliott Wave setups when confirmed by price.
### Current View
Price is currently consolidating inside the highlighted box after a strong advance.
At this stage, I consider this consolidation to be a Wave 2 correction , not a trend reversal.
As long as price remains above the recent swing low, the bullish count remains valid.
### What I'm Expecting
If this count is correct, Copper should soon begin the next impulsive advance.
A sustained breakout above the current consolidation range would increase confidence that Wave 3 of a higher degree is underway.
Wave 3 is typically the strongest and longest impulse in an Elliott Wave sequence, making this an important area to monitor.
### Invalidation
A decisive break below the current Wave 2 low would invalidate this preferred count and require a reassessment of the larger structure.
**This is my preferred Elliott Wave count based on current price action. As always, markets evolve and wave counts should adapt accordingly.**
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**#Copper #XCUUSD #ElliottWave #TechnicalAnalysis #Commodities #TradingView #WaveAnalysis #PriceAction #Bullish #MarketStructure**
Long
Mazagon Dock – BuyClassic Elliott Wave Setups #1 : Mazagon Dock – WXY Correction Followed by a First Wave Extension, completion of zigzag - Buy
Mazagon Dock completed Primary Wave 1 on 19 May 2025, after an advance lasting nearly 1,680 days. The stock then underwent a Primary Wave 2 correction, which lasted about 316 days and retraced approximately 45% from the peak. The correction unfolded as a WXY structure, with Wave W forming a Flat correction and Wave Y developing as a Zigzag . This is a good example of how complex corrective structures can unfold following the completion of a larger-degree impulse.
The Current Setup
Following the completion of Primary Wave 2 on 30 March 2026, the stock has started forming a new impulse wave. Interestingly, the first impulse itself appears to be a First Wave Extension (W1 Extension) — a relatively uncommon but well-recognized Elliott Wave pattern.
As discussed in my educational post on First Wave Extensions (30 July), when Wave 1 extends, the remaining actionary waves often complete within 78.6% of the length of Wave 1. The current structure is closely following this guideline.
Despite the impulse itself being relatively compact, the subsequent correction has been quite elaborate, reflecting the caution and risk aversion that often follow the completion of a larger-degree correction.
The recent decline also appears to have completed Wave (v) of Wave C on 30 July 2026, with Wave (v) terminating near 50% of the length of Waves (i)–(iii)—another Fibonacci relationship frequently observed in Elliott Wave analysis.
A fresh long position may be considered only above 2403, to avoid possible formation of a flat correction, if any.
Stop Loss: Below 2243 (61.8% Trend-Based Fibonacci Extension support)
Long
XAUUSD: Weekly Elliott Wave might require another low.Gold is still trading under the larger downtrend structure, and the weekly chart has not confirmed a full bullish reversal yet. From Kelly’s view, the current market is moving sideways above key support, but as long as price remains below the descending trendline and the 4,201 resistance area, the bearish Elliott structure still needs attention.
The key idea is simple: gold may continue lower first to complete the final Elliott wave, then a larger ABC recovery may appear later if buyers defend the lower Fibonacci zone.
Market structure
The chart shows gold has been moving under a clear downtrend trendline after the previous major bullish cycle ended. Price is currently trading around 4,045, while the nearest key support zone is around 3,960.
This 3,960 area is important because it is the last visible support before the larger Elliott Wave End zone below. If gold loses this support with strong pressure, price may continue towards the Fibonacci 2.618 target area around 3,730–3,780.
The main resistance above remains 4,201. Gold needs to break above this zone and the downtrend trendline before the weekly bullish recovery becomes more reliable.
Key levels
4,045: current price reaction area
3,960: key support zone and weekly decision level
3,730–3,780: Elliott Wave End / Fibonacci 2.618 target zone
4,100–4,150: short-term rebound resistance
4,201: main resistance and bullish confirmation area
Above 4,201: area where the bearish weekly structure weakens
Elliott Wave view
From an Elliott Wave perspective, gold still appears to be developing the final stage of a larger bearish 5-wave cycle.
Wave 1 started after the major top formed.
Wave 2 created a strong corrective recovery but failed below the downtrend structure.
Wave 3 delivered the main bearish expansion.
Wave 4 has developed as a sideways consolidation near the current area.
Wave 5 may still need one more downside move towards the 3,730–3,780 Fibonacci zone before the structure becomes complete.
If wave 5 ends near the lower Fibonacci target, Kelly will watch for an ABC recovery. That would mean gold first forms wave A upward, then wave B pullback, and finally wave C recovery towards the 4,100–4,201 resistance area.
Trading scenario
Preferred scenario: wait for gold to react below resistance and confirm whether sellers still control the weekly structure.
Sell zone: 4,080–4,150 if bearish rejection appears
Stop loss: above the confirmed rejection high or above 4,201
Take profit 1: 3,960
Take profit 2: 3,850
Take profit 3: 3,730–3,780
Alternative scenario: if gold breaks above 4,201 and holds above the downtrend trendline, the bearish Elliott wave setup weakens. In that case, price may start an earlier ABC recovery before reaching the lower Fibonacci target.
Kelly’s view
For Kelly, the weekly structure is still cautious. Gold is holding above support, but it has not broken the main downtrend line yet.
The cleaner plan is to watch whether 3,960 holds or breaks. If this support fails, the final Elliott wave may continue towards the Fibonacci 2.618 zone. If buyers defend the lower area, gold may prepare for a larger ABC recovery.
Gold is still below the main trendline.
One more bearish wave may complete the Elliott structure before a stronger recovery appears.
Share your view below. Short 
Shadowfax Technologies – Is it time to book profits?IPO Case Studies #1
Shadowfax Technologies was listed on 28 January 2026 and began forming its first Elliott Wave impulse almost immediately after listing.
In just over six months, the stock has delivered more than 150% returns from its listing price— a remarkable rally . Based on the current wave structure, it appears that the first impulse wave has most likely completed, making a corrective phase increasingly probable. Is it time to book profits? Let us analyse.
Wave Structure
• Wave 1 completed on 13 February 2026 as a clean five-wave impulse.
• Wave 2 unfolded as a zigzag, retracing approximately 78.6% of Wave 1.
• Wave 3 extended strongly and peaked on 29 April 2026, travelling 2.272× the length of Wave 1.
• Wave 4 formed a small Flat correction, completing on 13 May 2026, maintaining good alternation with Wave 2.
• Wave 5 peaked on 7 July 2026 as another extended advance, reaching approximately 1.0× the combined length of Waves 1–3, a common Fibonacci relationship for fifth-wave extensions.
What comes next?
The developing correction currently resembles an Expanded Flat (3-3-5).
Wave A appears complete as a three-wave decline.
Wave B has likely completed after exceeding the origin of Wave A, a defining characteristic of an Expanded Flat.
Wave C is expected to unfold as a five-wave sequence, which could complete the higher-degree correction.
After a 150%+ rally, the reward-to-risk ratio is no longer favourable.
Investors may consider protecting profits, while fresh long positions are best avoided until the corrective structure is complete.
Short
XAUUSD: Bullish wave setup above 4,070Gold is showing a constructive bullish recovery after defending the lower support area near 3,996. From Kelly’s view, the current chart suggests that XAUUSD may be building a new Elliott upside structure, with the latest pullback acting as a healthy correction before the next bullish wave develops.
The key idea is simple: gold is still holding above the buy zone, and if buyers defend this area, the next upside move may continue towards the resistance zones above.
⟡ Market structure
The chart shows gold reacted strongly from the lower support and pushed into the 4,110–4,120 area. After that, price pulled back into the marked Buy zone wave 3 around 4,068–4,075.
This zone is important because it may become the base for the next bullish continuation. Current price is trading around 4,072, directly inside the key reaction area. If price holds here and creates a bullish confirmation candle, buyers may attempt to push gold back towards 4,118–4,120 first.
Above that, the next important resistance is around 4,160–4,165. If gold breaks this zone with strength, the larger Elliott target near 4,220–4,225 becomes possible.
➤ Key levels
◌ 4,068–4,075: Buy zone wave 3 and current reaction area
◌ 4,118–4,120: first upside checkpoint
◌ 4,160–4,165: main resistance zone
◌ 4,220–4,225: Elliott wave completion / Fibonacci 1.618 target
◌ 3,996: major support and bullish structure protection
◌ Below 4,050: area where the bullish setup starts to weaken
⌁ Elliott Wave view
From an Elliott Wave perspective, gold may be forming a new bullish 5-wave structure after the previous decline ended near support.
Wave 1 created the first strong push from the lower base.
Wave 2 corrected back but still respected the recovery structure.
Wave 3 may begin from the current buy zone if price holds above 4,068–4,075.
Wave 4 could appear later as a small pullback near 4,118–4,120.
Wave 5 may then aim towards 4,220–4,225, where the chart marks the Elliott completion zone.
This is why Kelly is watching the current support carefully. If buyers defend this area, the bullish wave count remains valid.
▸ Trading scenario
Preferred scenario: wait for gold to hold the Buy zone wave 3 and show bullish confirmation.
Entry zone: 4,068–4,075 if bullish confirmation appears
Stop loss: below the confirmed pullback low or below 4,050
Take profit 1: 4,118–4,120
Take profit 2: 4,160–4,165
Take profit 3: 4,220–4,225 if wave 5 extends
Alternative scenario: if gold breaks below 4,050 with strong bearish pressure, the bullish setup weakens. In that case, price may retest the lower support around 3,996 before building a new structure.
⌁ Kelly’s view
For Kelly, the current structure still supports a bullish scenario. Gold is pulling back into a key buy zone instead of breaking down aggressively, which means buyers still have a chance to continue the recovery.
The cleanest plan is to wait for confirmation around 4,068–4,075. If this zone holds, gold may continue towards 4,160 first, then the Elliott completion zone near 4,220.
Gold is holding a bullish recovery structure. If the buy zone remains protected, the next Elliott wave may continue higher.
Share your view below. Long 
AXIS BANK | Swing Long Setup 📌 AXIS BANK – Wave 2 Completion & Potential Bullish Wave 3 Ahead 🚀
Axis Bank appears to have completed its corrective Wave 2 and may now be gearing up for the next impulsive rally — Wave 3, which is often the strongest in Elliott Wave theory.
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🧩 Elliott Wave Structure
Wave 1: Strong rally from the lows earlier in 2025, showing clear bullish intent.
Wave 2: Completed as a complex W–X–Y correction , ending around the 50% Fibonacci retracement zone (₹1,079), which is a common reversal area in Elliott Wave patterns.
The substructure inside Wave 2 (marked as a–b–c, w–x–y) shows corrective nature, indicating that the broader uptrend remains intact.
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📈 Current Outlook & Key Levels
Current Price**: ₹1,073 (hovering near 50% retracement level).
Support Zones:
₹1,051 (38.2% Fib) – minor support.
₹1,005 (23.6% Fib) – strong support and Wave 2 invalidation watch.
Immediate Resistance: ₹1,128 (61.8% Fib).
Breakout Trigger : A sustained close above ₹1,182 will confirm strength and open the path for higher targets.
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🎯 Upside Targets (Based on Fib Extensions of Wave 1)
Target 1: ₹1,238 (100% projection).
Target 2: ₹1,321 (127.2% extension) – strong Wave 3 projection zone.
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🔍 Indicators & Market Context
✅ Price has respected the 50% Fibonacci retracement, showing early signs of buyers stepping in.
✅ Moving averages are starting to flatten, and a bullish crossover could be on the way once price pushes above ₹1,128.
✅ Volume remains moderate; a spike in buying volume on breakout would add confidence to the bullish scenario.
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⚠️ Risk Management
> If price drops below ₹1,005 (Wave 2 low), the bullish Elliott count would be invalidated, and deeper correction may follow. In such a case, it's better to step aside and wait for a fresh setup.
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📝 Summary
> Axis Bank seems to have finished its Wave 2 correction and is preparing for a possible Wave 3 rally. A breakout above ₹1,182 could start the next bullish leg towards ₹1,238 and ₹1,321. Until then, watch the key supports at ₹1,051 and ₹1,005.
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**Disclaimer:**
This analysis is for educational purposes only and is not financial advice. Please consult a SEBI-registered financial advisor before making any investment decisions.
#AxisBank #ElliottWave #SwingTrading #Wave3 #PriceAction #TradingViewIndia #TechnicalAnalysis
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Long
Elliott Wave Principle: Understanding Wave 1 ExtensionChartTheWave Learning Series
Elliott Wave Principle: Understanding Wave 1 Extension
This post is a continuation of my educational series on the Elliott Wave Principle. In an earlier lesson, we learnt that any one of the three motive waves—Wave 1, Wave 3 or Wave 5—can extend. While Wave 3 extensions are the most discussed, today let's look at a real-market example of a Wave 1 extension .
A Wave 1 extension occurs when the first motive wave develops into an elongated impulse with five clear internal subdivisions and ultimately becomes the dominant motive wave of the sequence.
What happens after a Wave 1 extension?
In my chart studies, I have often observed that when Wave 1 is the extended wave, the subsequent motive waves (Wave 3 and Wave 5) frequently terminate within approximately 78.6% of the length of the extended Wave 1. While the textbook commonly highlights 61.8%, markets often extend beyond this level while still maintaining proportionality.
Key Takeaway : In the case of Wave 1 extension, do not expect the wave to prolong.
Let's understand this using Aequs Ltd., which was listed in December 2025.
Chart Analysis
Wave 1 – Extended Impulse
Wave 1 developed into an extended impulse with five well-defined internal subdivisions.
Sub-wave 3 extended to approximately 1.272× the length of Sub-wave 1.
Sub-wave 4 found support near the 78.6% Trend-Based Fibonacci Extension (TBFE) level of Sub-wave 1.
Sub-wave 5 extended to approximately 1.414× the length of Sub-wave 1, completing the extended Wave 1.
Wave 2 : Regular Flat (3-3-5) structure.
Wave 3
Wave 3 advanced as a smaller five-wave impulse and terminated at approximately 61.8% of the length of Wave 1.
Wave 4
Wave 4 was a small correction which took support at 50% TBFE of Wave 1.
Wave 5
Wave 5 advanced to approximately 61.8% of Wave 3, resulting in an overall length of nearly 78.6% of the extended Wave 1.
Key Takeaway
One of the common misconceptions among Elliott Wave practitioners is that Wave 3 must always be the largest wave. In reality, any one of the three motive waves can extend. The wave that extends is determined by its internal structure and proportional relationships.
Studying wave subdivisions together with Fibonacci relationships helps build confidence in the wave count as it develops and enables traders to analyse market structure more objectively.
In a future lesson, I'll share another interesting example where both Wave 1 and Wave 3 exhibit extended characteristics—a practical variation that is rarely discussed in textbooks but occasionally appears in live markets.
Education
XAUUSD: Bullish recovery in channel.Gold is showing a stronger recovery reaction after defending the lower support area inside the descending channel. From Kelly’s view, the market is still not fully bullish on the bigger structure, but the short-term Elliott wave is improving and may continue higher if buyers can hold the current support zone.
The key idea is simple: gold is recovering from support, but the next move needs confirmation above the resistance-buy zone.
⟡ Market structure
The chart shows gold has been trading inside a descending channel, with sellers controlling the broader direction. However, price reacted well from the strong support zone around 4,020–4,030, showing that buyers are trying to build a short-term recovery base.
Current price is reacting near 4,045–4,060, which is marked as the resistance-buy zone. This area is very important because if price holds above it, the zone may change from resistance into support.
If buyers defend this area, gold may continue towards the 4,090–4,100 zone, where the chart marks the possible Elliott completion area.
➤ Key levels
◌ 4,020–4,030: strong support and recovery base
◌ 4,045–4,060: resistance-buy zone and current reaction area
◌ 4,070: short-term upside checkpoint
◌ 4,090–4,100: Elliott completion / main target zone
◌ 4,150: higher extension area if momentum expands
◌ Below 4,020: area where the bullish recovery setup weakens
⌁ Elliott Wave view
From an Elliott Wave perspective, gold may be forming a short-term bullish 5-wave recovery after the previous bearish move slowed down near support.
Wave 1 started from the lower support base.
Wave 2 corrected but did not break the recent low.
Wave 3 is now pushing price back towards the upper part of the channel.
Wave 4 may appear as a small pullback around the 4,045–4,060 zone.
If this zone holds, wave 5 may continue towards 4,090–4,100.
This is why Kelly would not chase price blindly. The cleaner setup is to wait for the market to confirm that the current resistance-buy zone can hold as support.
▸ Trading scenario
Preferred scenario: wait for gold to hold above the 4,045–4,060 zone and show bullish confirmation.
Entry zone: 4,045–4,060 if bullish confirmation appears
Stop loss: below 4,020 or below the confirmed pullback low
Take profit 1: 4,070
Take profit 2: 4,090–4,100
Take profit 3: 4,150 if price breaks the channel with strength
Alternative scenario: if gold breaks below 4,020 with strong bearish pressure, the recovery setup weakens. In that case, price may return to the lower channel area before forming a new structure.
⌁ Kelly’s view
For Kelly, this is a bullish recovery setup inside a larger corrective channel. The short-term structure is improving, but buyers still need to prove strength above the current resistance-buy zone.
The best plan is to watch the reaction around 4,045–4,060. If this area holds, the next Elliott wave may continue towards 4,090–4,100.
Gold is recovering from support. If buyers defend the current zone, wave 5 may continue higher.
Share your view below. Long 
XAUUSD: ABC Pullback Could Restart Wave 5Gold is correcting after a short-term bullish recovery, but the structure has not turned bearish yet. From Kelly’s view, the current pullback may simply be an ABC correction before price attempts another upside leg towards the wave 5 completion zone.
The key idea is simple: gold may need one more clean support reaction before the next bullish continuation becomes stronger.
⟡ Market structure
The chart shows gold rejected from the upper area after completing a short recovery sequence. Price then pulled back sharply and is now reacting around 4,049, close to the marked Buy zone ABC.
This area is important because it may become the base for the next bullish leg if buyers defend it. The market is currently sitting between support and short-term resistance, so confirmation is more important than chasing price.
The nearest reaction zone above is around 4,065–4,070, marked as the sell scalping area. If gold breaks through this zone and holds, the bullish recovery may continue towards 4,090–4,095, where the chart marks the End wave 5 area.
➤ Key levels
◌ 4,040–4,050: Buy zone ABC and current support area
◌ 4,049: current price reaction area
◌ 4,065–4,070: sell scalping / short-term resistance
◌ 4,090–4,095: End wave 5 target zone
◌ Below 4,035: area where the bullish correction setup weakens
◌ Above 4,070: stronger confirmation for bullish continuation
⌁ Elliott Wave view
From an Elliott Wave perspective, gold appears to be forming an ABC correction after the previous upside recovery.
Wave A created the first pullback from the short-term high.
Wave B reacted upward but failed to continue strongly.
Wave C is now testing the lower buy zone around 4,040–4,050.
If wave C ends in this zone and buyers create a confirmation candle, gold may begin the next bullish phase. That next move can develop as wave 5, with the first target around 4,065–4,070 and the main target near 4,090–4,095.
▸ Trading scenario
Preferred scenario: wait for gold to hold the Buy zone ABC and show bullish confirmation.
Entry zone: 4,040–4,050 if bullish confirmation appears
Stop loss: below the confirmed wave C low or below 4,035
Take profit 1: 4,065–4,070
Take profit 2: 4,090–4,095
Take profit 3: higher only if price breaks the wave 5 zone with strong momentum
Alternative scenario: if gold breaks below 4,035 with strong bearish pressure, the ABC bullish setup weakens. In that case, price may need to form a deeper support base before the next recovery becomes reliable.
⌁ Kelly’s view
For Kelly, this is a bullish correction setup, not a chase-buy setup. Gold is still holding near the ABC support zone, but buyers need to confirm that this area is protected.
The cleanest plan is to wait for a reaction around 4,040–4,050. If this zone holds, gold may continue the next wave higher towards 4,090–4,095.
Gold is correcting inside a bullish structure.
If the ABC buy zone holds, wave 5 may continue upward.
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GULSHAN POLYOLS LIMITED (NSE) — WEEKLY ELLIOTT WAVE OUTLOOKMarket Structure
NSE:GULPOLY appears to have completed a complex corrective Wave (2), ending with a textbook 5-wave decline inside a falling channel. Price has now broken above the channel resistance, suggesting that the correction may be complete and the next impulsive cycle could be underway.
Elliott Wave Count
Primary Wave (1) completed near ₹354.15.
Complex ABC corrective Wave (2) unfolded over several years.
Final leg ((c)) completed as a clear 5-wave impulse.
Recent breakout above the descending channel increases the probability that Primary Wave (3) has begun.
Technical Observations
Breakout from long-term falling channel
Higher low formation after Wave (5) bottom
Increasing buying interest near support
Weekly trend attempting to reverse after prolonged correction
Key Levels
Current Price: ₹197.74 as on 27/07/2026
Immediate Resistance: ₹220–225
Major Resistance: ₹260
Long-term Confirmation: Above ₹260
Invalidation: Sustained close below ₹ 140-150
Bullish Scenario
If the breakout sustains, Wave (3) typically becomes the strongest Elliott Wave and can extend significantly beyond Wave (1). A move above ₹220 would strengthen the bullish outlook, while a decisive break above ₹260 would confirm higher-degree trend continuation.
Trading Plan
Aggressive Entry: On current breakout with proper risk management.
Conservative Entry: Wait for a successful retest of the breakout zone.
Risk Management: Keep stop-loss below the recent swing low or below the channel breakout level according to your trading strategy.
Conclusion
The long corrective phase appears to be ending, and Gulshan Polyols may be entering a fresh impulsive uptrend. The channel breakout, completed Elliott Wave structure, and improving price action all favor a bullish outlook, though confirmation above key resistance levels is still required.
Disclaimer
This analysis is for educational and informational purposes only and reflects my personal interpretation of Elliott Wave Theory and technical analysis. Financial markets are inherently uncertain, and wave counts are subject to change as new price action develops.
This publication is not financial, investment, or trading advice, nor is it a recommendation to buy or sell any security. Always conduct your own research, consider your financial situation and risk tolerance, and consult a qualified financial advisor before making any investment decisions. XAUUSD: Bullish Wave 5 may continue from 4,084Gold is still holding a constructive bullish structure after the strong recovery from the lower base. From Kelly’s view, the current chart suggests that XAUUSD may be preparing for another upside leg, with wave 5 potentially developing if the 4,079–4,084 buy zone continues to hold.
The key idea is simple: gold may correct first, but the main intraday structure still favors bullish continuation while price remains above the rising support line.
⟡ Market structure
The chart shows gold completed a strong recovery from the 4,020 area and formed a clean sequence of higher lows. After pushing into the 4,116 resistance area, price started to pull back, which looks like a healthy correction rather than a full bearish reversal.
Current price is around 4,085, directly near the buy zone wave 5 at 4,079–4,084. This is the key reaction area for buyers. If gold holds this zone and prints bullish confirmation, the next upside leg may continue towards 4,116 first, then 4,140–4,150.
The upper area around 4,140–4,150 is marked as the end wave 5 sell zone, while 4,165 remains the larger resistance and upside confirmation level.
➤ Key levels
◌ 4,079–4,084: buy zone wave 5 and key support
◌ 4,085: current price reaction area
◌ 4,116: first resistance and wave 3 high
◌ 4,140–4,150: end wave 5 / sell reaction zone
◌ 4,165: major resistance and bullish extension level
◌ Below 4,050: area where the bullish setup starts to weaken
⌁ Elliott Wave view
From an Elliott Wave perspective, gold appears to be forming a bullish 5-wave structure after the previous correction ended.
Wave 1 created the first upside reaction from the lower zone. Wave 2 pulled back but held above the base. Wave 3 expanded higher and reached the 4,116 area. Wave 4 may now be forming as a controlled correction into 4,079–4,084. If this zone holds, wave 5 may continue towards 4,140–4,150, with a possible extension towards 4,165 if momentum remains strong.
This is why Kelly would not chase price at resistance. The cleaner setup is to wait for price to respect the buy zone, then follow the next bullish confirmation.
▸ Trading scenario
Preferred scenario: wait for gold to hold the 4,079–4,084 buy zone and show bullish confirmation.
Entry zone: 4,079–4,084 if bullish confirmation appears Stop loss: below the confirmed wave 4 low or below 4,050 Take profit 1: 4,116 Take profit 2: 4,140–4,150 Take profit 3: 4,165
Alternative scenario: if gold breaks below 4,079 and loses the rising trendline with strong bearish pressure, the bullish wave 5 setup weakens. In that case, price may retest the lower support around 4,050–4,020 before building a new structure.
⌁ Kelly’s view
For Kelly, the main structure still favors bullish continuation. Gold has built a clear recovery rhythm, and the current pullback may simply be wave 4 preparing the next wave 5 move.
The best plan is patience: wait for the buy zone reaction, then confirm whether buyers are still defending the trend.
Gold is correcting inside a bullish Elliott structure. If 4,079–4,084 holds, wave 5 may continue towards 4,140–4,165.
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