CIPLA Elliott Wave technical analysis [Video]

CIPLA Elliott Wave technical analysis

• Function: Counter Trend.

• Mode: Corrective.

• Strucutre: Orange wave Y.

• Position: Navy blue wave 2.

• Direction next lower degrees: Orange wave Y (started).

Details:

Orange wave X of 2 appears completed, and now orange wave Y is in progress.

Wave cancel invalid level: 1703.

The CIPLA daily chart analysis indicates a counter-trend correction forming within a broader bearish setup. The stock has finalized orange wave X and has now moved into orange wave Y within the larger navy blue wave 2 structure. This suggests a temporary upward retracement before the likely continuation of the primary downward trend.

Orange wave Y represents the corrective phase, which often retraces between 38% to 61% of the previous decline and commonly forms complex corrective patterns. The end of wave X’s downward move has paved the way for this corrective pullback, which typically features overlapping price action and reduced momentum. The daily timeframe points to an intermediate-term pause within a broader bearish trend.

The next expected movement involves the completion of orange wave Y’s correction, after which the downward trend could resume. A crucial invalidation level to monitor is 1703 — if the stock moves above this, the current wave count would need reassessment. Traders should watch for typical correction-ending signals, including bearish reversal patterns and momentum indicators reaching overbought levels.

This correction phase offers traders a chance to prepare for the anticipated downward move. Technical tools will be key in confirming the end of the correction and the start of the next bearish impulse. The current structure indicates that CIPLA may soon continue its decline after completing the current corrective sequence.

Observing price action around key Fibonacci retracement levels will be essential for timing entry points accurately. The daily perspective underlines the significance of this developing corrective phase within the broader trend. Technical indicators and specific price patterns will provide the needed confirmation as the structure matures.

CIPLA Elliott Wave technical analysis

• Function: Counter Trend.

• Mode: Corrective.

• Structure: Navy blue wave 2.

• Position: Gray wave 3.

• Direction next higher degrees: Navy blue wave.

Details:

Navy blue wave 1 appears completed, and now navy blue wave 2 is unfolding.

The CIPLA weekly chart analysis highlights a counter-trend correction forming within a broader bearish framework. The stock has completed navy blue wave 1's decline and entered the corrective navy blue wave 2 within the larger gray wave 3 downtrend. This structure suggests a temporary upward retracement before the probable continuation of the primary downward trend.

Navy blue wave 2 represents the corrective phase, usually retracing between 38% to 61% of wave 1’s decline, often forming traditional corrective structures like zigzags or flats. The end of wave 1’s strong downward impulse has set the foundation for this corrective pullback, typically showing overlapping price action and weakening momentum. The weekly timeframe indicates that this is likely an intermediate-term pause within a broader bearish sequence.

The next expected movement will be the initiation of navy blue wave 3 downward once wave 2’s correction ends. Navy blue wave 3 is anticipated to be the strongest phase of the pattern, potentially pushing significantly lower than wave 1’s low. Traders should monitor wave 2 for standard termination signals such as bearish reversal candlesticks and momentum indicators pointing to overbought conditions.

This corrective stage offers traders the chance to position for the anticipated wave 3 decline. Technical tools and analysis will be vital to confirm when the correction ends and a new downward impulse begins. The current wave structure implies that the stock could soon embark on its next bearish leg after completing this corrective sequence.

Careful observation of price behavior around critical Fibonacci retracement levels will be essential for identifying optimal entry points. The weekly chart underlines the importance of this developing corrective structure within the broader bearish context. Technical indicators and volume patterns will further help validate the evolving structure as it progresses.

CIPLA Elliott Wave technical analysis [Video]