Yes Bank – Power of Head & Shoulder pattern, text book pattern!

Yes Bank had been a late entrant in the ongoing rally but it came with a bang! The stock rose sharply as soon as our mentioned resistance level was broken.

I do not necessarily look at only Elliott wave pattern but the orthodox technical analysis patterns like Head & Shoulder are equally important for me. Yes bank gave classical breakout above its neckline and achieved the target levels precisely as expected.

Below is the part of research from “The Financial waves short term update”

Yes Bank 60 mins chart:(Anticipated as on 20th April 2018)

Yes Bank 60 mins chart: (Happened as on 27th April 2018)

Wave analysis: Following was anticipated on 20th April 2018 morning research report.

Yes Bank has finally showed a pause in its multi-month down move which is a sign of relief. Also in previous trading session it managed to gain by 2.89%. It is now arriving near important juncture.

As shown in daily chart, (showed in actual research report) prices have completed wave (c) of Flat pattern correction near 286 levels and next leg on upside in form of wave (x) is ongoing which can take the prices towards 360 levels where red channel resistance is placed. Also its 25-periods EMA is moving along with prices which indicate short term positive reversal might be possible.

As shown on hourly chart, prices have completed wave c on downside completing wave v of Terminal pattern (Ending Diagonal). As of now prices have broken the ii-iv trendline but failed to take out the important resistance of 320 levels and is now moving sideways. Currently wave a has completed near 320 levels and next leg in form of wave b is ongoing. Also we can see an inverse Head & Shoulder pattern and break above the neckline placed at 320 levels can take prices towards 360 levels which is the post pattern implication target.

In short, trend for Yes Bank is positive. Close above 320 levels can take the prices towards 340 followed by 360 levels.

Happened: Yes Bank broke above 320 and rushed towards the target level of 360 on upside. This simply shows power of combining Elliott wave with technical analysis Head & Shoulder pattern!

“The Financial Waves short term update” is daily equity research report covering Nifty and 3 stocks providing detailed analysis using Elliott wave and other technical analysis methods. Subscribe here

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