NSE PNB is Preparing for a Corrective Breakout
Timeframe: Daily
NSE PNB is currently facing strong resistance at the 200 EMA on the daily timeframe. The price has completed a corrective W-X-Y formation on the daily chart, and the ATR has increased to 2.91.
The stock has reached the final wave V of C of (Y) at 103.62 and has started moving upward. If this marks the end of the correction, the price needs to break and sustain above wave B at 112. Upon holding above this level, traders can aim for targets of 117 – 126 – 137+. However, if the price breaks below the low of wave (W), the setup will be invalid.
Stay tuned for further updates.
NSE BANKNIFTY – Elliott Wave Outlook
The low of 49,654 marked the end of the correction and the beginning of a new impulsive cycle. In this cycle, the price has completed wave 3, reaching a new high of 54,467.3, with a 2.3% rise following the breakout of the all-time high (ATH).
Banknifty is now expected to enter a corrective wave 4. The signal for this decline will be a breakdown of sub-wave 4 of wave (3). According to the rule of alternation, a flat correction is likely for wave (4), since wave (2) was sharp. The common retracement for wave (4) is around 38.2%, but it shouldn’t exceed 61.8% of wave 3. Traders are advised to wait for the complete formation of wave 4 before initiating any correction breakout setups.
Further updates will follow soon.
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