EICHER MOTORS Elliott Wave technical analysis [Video]

EICHER MOTORS Elliott Wave technical analysis

• Function: Bullish Trend.

• Mode: Impulsive.

• Structure: Orange Wave 3.

• Position: Navy Blue Wave 5.

• Direction next lower degrees: Orange Wave 4.

Details:

Orange wave 2 seems completed, and orange wave 3 is now active.

• Wave cancel/invalid level: 4997.25.

The EICHER MOTORS daily chart study highlights a bullish trend evolving through an impulsive Elliott Wave structure. The stock has ended the orange wave 2 correction and moved into orange wave 3 within the broader navy blue wave 5 configuration. This setup indicates the market is entering the most vigorous phase of its upward cycle, usually marked by strong momentum and notable price advances.

Orange wave 3 represents the central trending phase in Elliott Wave theory, typically displaying the sharpest price surges aligned with the prevailing trend. The finalization of wave 2’s correction sets a clear pathway for a strong wave 3 rally, often larger than wave 1. The current wave outline points towards continued upward movement with notable strength until the next correction.

The critical point to monitor is 4997.25. If prices fall below this threshold, the present bullish interpretation will be invalidated, prompting a reassessment. This level is crucial in maintaining the integrity of the bullish wave count.

The daily time frame offers clarity on the unfolding impulsive structure, indicating significant potential for further upside. Traders should expect traditional wave 3 behavior: strong, persistent momentum, while ensuring respect for the invalidation level. Current analysis supports a bullish stance until clear evidence of wave 3's completion appears.

Technical signals and price behavior will be vital for validating the ongoing wave development. The shift into navy blue wave 5 at a higher degree suggests the continuation of bullish forces.
Traders are advised to keep an eye on volume trends and momentum tools to confirm this wave progression.

Following the completion of orange wave 3, the next move would be orange wave 4 — a corrective phase expected to provide a retracement opportunity before any further uptrend continuation.
Presently, wave 3 offers some of the most advantageous conditions for trend followers within the Elliott Wave cycle.

EICHER MOTORS Elliott Wave technical analysis

• Function: Bullish Trend.

• Mode: Impulsive.

• Structure: Navy Blue Wave 5.

• Position: Gray Wave 3.

• Direction next lower degrees: Gray Wave 4.

Details:

Navy blue wave 4 appears complete, and navy blue wave 5 is currently developing.

• Wave cancel/invalid level: 4997.25.

The EICHER MOTORS weekly chart assessment shows a bullish trend nearing its final stages through an impulsive Elliott Wave structure. The stock completed its navy blue wave 4 correction and has moved into navy blue wave 5 within the larger gray wave 3 structure. This setup points towards the last major upward movement in the ongoing bullish sequence, potentially concluding the pattern at this degree.

Navy blue wave 5 typically marks the terminal segment of a bullish sequence, and can feature either strong momentum or signs of weakening as the trend nears completion. Following wave 4's correction, this wave 5 advance often challenges or surpasses previous highs before tiring. The current wave alignment hints that the uptrend might be close to finishing as the final fifth wave matures.

The weekly timeframe offers critical insights into this pattern’s evolution, signaling the stock is likely in the later stages of its bullish run. The movement into gray wave 3 at a higher degree suggests a broader bullish cycle may still be active.
A key level to monitor is 4997.25, as a breakdown beneath this point would invalidate the current wave view and necessitate reassessment.

Market observers should closely watch navy blue wave 5 for signs of trend exhaustion, including bearish divergence in momentum indicators or reversal candlestick patterns. The analysis recommends staying alert for a possible trend change as wave 5 winds down, though wave extensions could potentially extend the rally beyond typical endpoints.

Technical analysis tools and price behavior will be vital for confirming when bullish momentum declines and a corrective phase initiates. The end of navy blue wave 5 would suggest a significant correction might follow.
Diligent monitoring of price movements will help pinpoint favorable exit strategies as the bullish sequence concludes.

Technical analyst: Malik Awais.

EICHER MOTORS Elliott Wave technical analysis [Video]