Thursday, July 4, 2013

IDBI: A classical example of Elliott wave Zigzag Pattern!

IDBI: A classical example of Elliott wave Zigzag Pattern!
By Waves Strategy Advisors. For more information visit
Elliott wave has 3 basic corrective patterns: Zigzag, Flat and Triangles. These 3 basic patterns are then combined to form complex correctives.
The below chart of IDBI shows very clear Zigzag pattern. Zigzag patterns are 5-3-5 structure which means wave A will be 5 waves, wave B will be 3 waves (means any correction) and wave C will be again 5 waves. The below chart shows this structure very clearly. Following is one of the chart picked up from “The Financial Waves STU” daily research report that gives short to medium term views, charts, Elliott wave counts on Nifty along with 3 different stocks.
IDBI Bank 120 mins chart:
Wave Analysis:
IDBI has been one of the weaker stocks within the midcap Banking space and this stock has formed a very clear Zigzag pattern on downside from 115 to 67 levels. The internal wave counts for this entire down move is very clear and we can see 5 waves impulsive move in both wave A and wave C. On other hand wave B is clearly showing a corrective move on upside in complex structure.
As shown on daily chart, wave C is exactly 61.8% of wave A at the level of 67 from where we are seeing bounce back on upside. Prices are still well below ……..
As shown on 120 mins chart, there is very clear 5 waves division with wave C and there is also strong positive divergence between wave v and iii of C. Prices have broken above the downward sloping red channel and moved higher. Combination of channels, internal wave counts, positive divergence, Fibonacci relationship between wave C and wave A are suggesting that ……..
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