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This technical analysis focuses on Educational example of Dixon Technologies (India) Ltd. on a weekly timeframe, utilizing Elliott Wave Theory to identify the primary market structure and potential future price action.
Elliott Wave Structural Analysis
1. The Impulse Phase (Motive Wave)
The stock underwent a massive bullish cycle that concluded in early 2025.
Wave ((1)) to ((3)): A clear five-wave sub-structure is visible. Wave ((3)) was highly extended, reaching a peak near 20,000.
Wave ((3)) Peak: The top of the primary impulsive trend is marked at the Wave ((3)), indicating a completion of the intermediate-degree strength.
2. The Corrective Phase (ABC Structure)
Since the peak, the stock has been in a Major Wave ((4)) corrective phase, which appears to be a Zig-Zag (5-3-5) pattern.
Key Technical Observations
The Ending Diagonal / Falling Wedge
At the tail end of Wave (C), the price action has formed a narrowing wedge-like structure (labeled with red sub-waves 1-2-3-4-5). This often indicates exhaustion of the selling pressure. The breakout from this small descending channel suggests that the "Pota" (smaller timeframe) momentum is shifting back to the upside.
Market Overview:
The chart depicts a completed multi-year impulsive move followed by a significant corrective phase. The price is currently at a critical juncture where a major higher-degree wave may have completed its correction, offering a potential base for the next impulsive cycle.
Elliott Wave theory:
Wave theory su
Support and Invalidation
Critical Support: The level marked at ₹9,600 is the Invalidation Level.
Significance:
According to Elliott Wave rules, if the price breaks below this level, the current count for a completed Wave 4 is invalidated, suggesting a more complex or deeper correction is underway.
Conclusion & Outlook
The primary analysis suggests that Primary Wave ((4)) is complete at the recent lows near 9,600.
Bullish Scenario:
If the 9,600 level holds, the stock is likely entering Primary Wave ((5)). This would typically target a move back toward the previous highs and potentially beyond, depending on the extension of the fifth wave.
Confirmation:
A sustained move above the recent descending trendline (the top of the final wedge) provides the first signal of a trend reversal.
Weekly Scenario
4 Hourly Scenario
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com/u/RK_Chaarts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
This technical analysis focuses on Educational example of Dixon Technologies (India) Ltd. on a weekly timeframe, utilizing Elliott Wave Theory to identify the primary market structure and potential future price action.
Elliott Wave Structural Analysis
1. The Impulse Phase (Motive Wave)
The stock underwent a massive bullish cycle that concluded in early 2025.
Wave ((1)) to ((3)): A clear five-wave sub-structure is visible. Wave ((3)) was highly extended, reaching a peak near 20,000.
Wave ((3)) Peak: The top of the primary impulsive trend is marked at the Wave ((3)), indicating a completion of the intermediate-degree strength.
2. The Corrective Phase (ABC Structure)
Since the peak, the stock has been in a Major Wave ((4)) corrective phase, which appears to be a Zig-Zag (5-3-5) pattern.
Key Technical Observations
The Ending Diagonal / Falling Wedge
At the tail end of Wave (C), the price action has formed a narrowing wedge-like structure (labeled with red sub-waves 1-2-3-4-5). This often indicates exhaustion of the selling pressure. The breakout from this small descending channel suggests that the "Pota" (smaller timeframe) momentum is shifting back to the upside.
Market Overview:
The chart depicts a completed multi-year impulsive move followed by a significant corrective phase. The price is currently at a critical juncture where a major higher-degree wave may have completed its correction, offering a potential base for the next impulsive cycle.
Elliott Wave theory:
Wave theory su
Support and Invalidation
Critical Support: The level marked at ₹9,600 is the Invalidation Level.
Significance:
According to Elliott Wave rules, if the price breaks below this level, the current count for a completed Wave 4 is invalidated, suggesting a more complex or deeper correction is underway.
Conclusion & Outlook
The primary analysis suggests that Primary Wave ((4)) is complete at the recent lows near 9,600.
Bullish Scenario:
If the 9,600 level holds, the stock is likely entering Primary Wave ((5)). This would typically target a move back toward the previous highs and potentially beyond, depending on the extension of the fifth wave.
Confirmation:
A sustained move above the recent descending trendline (the top of the final wedge) provides the first signal of a trend reversal.
Weekly Scenario
4 Hourly Scenario
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com/u/RK_Chaarts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
YouTube: youtube.com/@rk_charts
Telegram : t.me/RK_Charts
Twitter : @charts_rk
Email : rkcharts@gmail. com
Disclaimer.
I am not sebi registered analyst.
My studies are for educational purpose only.
Telegram : t.me/RK_Charts
Twitter : @charts_rk
Email : rkcharts@gmail. com
Disclaimer.
I am not sebi registered analyst.
My studies are for educational purpose only.
Bài đăng liên quan
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
YouTube: youtube.com/@rk_charts
Telegram : t.me/RK_Charts
Twitter : @charts_rk
Email : rkcharts@gmail. com
Disclaimer.
I am not sebi registered analyst.
My studies are for educational purpose only.
Telegram : t.me/RK_Charts
Twitter : @charts_rk
Email : rkcharts@gmail. com
Disclaimer.
I am not sebi registered analyst.
My studies are for educational purpose only.
Bài đăng liên quan
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.