28th Sep
Finally, after almost 2 weeks of call to buy, now it seems to have completed the corrective phase and wave 5 to minimum target of 250 seems to have started. Though that is only initial target and in medium term it should go for higher target. Good accumulation is seen near the target area which confirms wave 4 is now over. Also the stock offers attractive risk reward ratio if we consider stop below 200.
11th Sep
Short Term View
Wave 5 ABC moves to the target around 255.
And more ABC patterns likely to follow thereafter.
Daily chart.
24th Aug
BHEL seems to have bottomed out just below target zone and when it breaches the lower target it is always advisable to wait and confirm if more downside is still left. Hence, the stock was under observation.
Two positive factors come to the fore to consider that the bottom may have been made are
1. The wave which has developed during this up-move seems a perfect 5 wave impulse and this could be sub wave 1 for the larger degree wave V. The wave has completed so retracement to 50% to 61.8% level can be expected to complete wave 2. These levels are marked in the hourly chart below. That would be our buy zone to ride a possible large wave 3 of V. Any deviation from this would require reconsideration of the count.
2. There is reasonable buying and a huge stopping volume signal at the bottom.
There is an outside possibility that the correction is still not over and the 5 wave impulse we just saw was just the first leg of counter trend move (sub wave a) and after corrective move down the stock moves up to complete the corrective move.
The end of that up move will give us a clue if this count is operating.
xxxxxxxxxx
Counts invalidated. Needs revision.
8th Aug
Well, Its almost there.
Expect Wave V for at least 55 more points soon!
1st Aug
BHEL seems closing in on correction target (wave IV termination) and therefore BUY zone (Highlighted in Blue in the chart).
Must point out that it looks like a multiple 1-2 count based set-up and generally such set-ups convert into a big rally spread over longer time in its wave V extensions. Let us hope it initiates wave V from the target zone.
Count invalidates below 202.
Finally, after almost 2 weeks of call to buy, now it seems to have completed the corrective phase and wave 5 to minimum target of 250 seems to have started. Though that is only initial target and in medium term it should go for higher target. Good accumulation is seen near the target area which confirms wave 4 is now over. Also the stock offers attractive risk reward ratio if we consider stop below 200.
11th Sep
Short Term View
Wave 5 ABC moves to the target around 255.
And more ABC patterns likely to follow thereafter.
Daily chart.
24th Aug
BHEL seems to have bottomed out just below target zone and when it breaches the lower target it is always advisable to wait and confirm if more downside is still left. Hence, the stock was under observation.
Two positive factors come to the fore to consider that the bottom may have been made are
1. The wave which has developed during this up-move seems a perfect 5 wave impulse and this could be sub wave 1 for the larger degree wave V. The wave has completed so retracement to 50% to 61.8% level can be expected to complete wave 2. These levels are marked in the hourly chart below. That would be our buy zone to ride a possible large wave 3 of V. Any deviation from this would require reconsideration of the count.
2. There is reasonable buying and a huge stopping volume signal at the bottom.
There is an outside possibility that the correction is still not over and the 5 wave impulse we just saw was just the first leg of counter trend move (sub wave a) and after corrective move down the stock moves up to complete the corrective move.
The end of that up move will give us a clue if this count is operating.
xxxxxxxxxx
Counts invalidated. Needs revision.
8th Aug
Well, Its almost there.
Expect Wave V for at least 55 more points soon!
1st Aug
BHEL seems closing in on correction target (wave IV termination) and therefore BUY zone (Highlighted in Blue in the chart).
Must point out that it looks like a multiple 1-2 count based set-up and generally such set-ups convert into a big rally spread over longer time in its wave V extensions. Let us hope it initiates wave V from the target zone.
Count invalidates below 202.
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