- Technical Strategy: Buy the dips
- Elliottwave View: Major reversal is happening
We are looking for this dip to be formed as 47.00 area will be treated as horizontal support on daily chart after testing trendline resistance on 52.28. We are predicating place (X) placed on 43.80 as per our last update on 27th May post. We are able to see five wave up after 43.80 towards 53.28. We were cautious on those level and spent few days to see reaction on this trendline resistance. We expected to fallback towards 47 levels in three wave to confirm our analysis. However, after a month, we are on this level where we can expect pullback completed and look for another high above 52.28.
Here we copied our daily and 240min chart to explain wave structure along with possible two scenario. In first and our preferred scenario, we are expecting to see more upside. To be confirm in this scenario, we want to see trendline breakout on 240min chart and price need to stable above 48 for day close.
On alternate scenario, we are on still downtrend and will see coming week close below 44 which will open a door to 40 and below levels. As current market condition, this count is having less probability. However, we need to mind that too in our analysis.
We are long today @ 47.43 with stoploss at 46.00. Target will be above 53.00