Elliott wave helps to understand the overall maturity of the trend. If we combine it with Keltner channel and simple price action then it can lead to powerful results.
Keltner channel – This indicator is different than that of Bollinger Bands®. Bollinger Bands uses standard deviation to the mean whereas the Keltner channel is derived using Average True Range (ATR). Both of the indicators have different ways of application.
See below in detail how to use these powerful indicators to derive path ahead for Tata Consumer Products.
TATACONSUM Daily chart with Keltner channel and Elliott wave
In the previous session, Tata Consumer Products showed a good rise and closed on a positive note with a gain of 0.86%. Stock looks to have formed inverse Head & Shoulders pattern on the daily chart which is visible on the above daily chart. Target 1 as per shoulder comes near 1060 levels.
On the daily chart, we have used the Keltner channel. Keltner Channel is volatility-based indicator. Currently, on the above chart we can see that prices are about to give a breakout of the Keltner channel which can result into good momentum in this stock.
As per wave perspective, primary wave (2) looks to have completed on the downside. For confirmation further follow up action is required. Further rise will be in form Wave (3) which is considered as a powerful one to be part of!
In nutshell, good momentum is expected to buildup on the upside In Tata Consumer Products once it breaches above 1005 with the targets of 1060 followed by 1100 levels. On the downside 958 is the crucial support.
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