HDFC Bank Elliott Wave technical analysis [Video]

HDFC Bank Elliott Wave technical analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Orange wave 4.

Position: Navy blue wave 1.

Direction next higher degrees: Orange wave 5.

Details: Orange wave 3 appears to be complete. Currently, either orange wave 4 or navy blue wave 1 is unfolding.

Wave cancel invalid level: 1622.

The daily chart evaluation of HDFC Bank outlines a counter-trend pattern within the broader market structure. The price action now reflects a corrective phase marked as orange wave four, nested in a larger bearish movement identified as navy blue wave one. The completion of orange wave three indicates a short-term rebound or a new downward sequence starting as navy blue wave one. This stage often signals a break in trend direction but suggests the dominant bearish sentiment may persist.

This analysis implies that HDFC Bank might be transitioning through orange wave four or initiating navy blue wave one. The invalidation level of 1622 is pivotal; a move above it would challenge the current wave count and suggest a possible shift or extended correction. Given the corrective setup, upside momentum is expected to remain restrained unless there’s confirmation of a broader bullish reversal.

This setup provides critical insight for market participants navigating this interim phase. Ongoing volatility is expected until wave four confirms its end or navy blue wave one becomes clear. It is essential to observe market behavior closely, particularly around the invalidation level, to manage risk and validate the next probable move in the trend.

The technical picture advises a cautious approach as this counter-trend structure unfolds. While some upside movement is possible, the greater trend remains tilted to the downside unless technical evidence negates the bearish case.

HDFC Bank Elliott Wave technical analysis

Function: Bullish Trend.

Mode: Impulsive.

Structure: Navy blue wave 1.

Position: Gray wave 3.

Direction next lower degrees: Navy blue wave 2.

Details: Gray wave 2 appears to be complete. Now navy blue wave 1 of 3 is progressing.

Wave cancel invalid level: 1622.

The weekly outlook for HDFC Bank presents a strong bullish scenario supported by an impulsive wave pattern. Navy blue wave one is currently forming, positioned within a larger advancing sequence identified as gray wave three. The completion of gray wave two signifies a transition into a new bullish phase, with navy blue wave one starting the upward movement of gray wave three.

The wave structure shows strong bullish momentum as gray wave two has finalized and wave one begins its upward move. A key level of 1622 has been defined for invalidation; breaching this would necessitate re-evaluating the wave count. The impulsive nature of this leg suggests heavy buying activity is influencing the rise, and positioning within gray wave three hints at further room for price growth.

Next, a corrective navy blue wave two is anticipated once the ongoing impulsive leg completes. This technical setup helps outline the larger bullish cycle and pinpoints 1622 as the vital support to sustain the uptrend. Investors should observe for further continuation of wave one while staying prepared for a potential corrective pullback.

This wave count underscores the stock’s favorable positioning within a dynamic bullish phase. While continued upside seems likely, traders should also be alert for signs of trend exhaustion ahead of the expected wave two.

HDFC Bank Elliott Wave technical analysis [Video]