CNX PHARMA wave counts

19 Nov 2021

Triple correction in the making,currently we are wave z sub wave b post it's completion we will get wave c on the upside.Notice how momentum is fading in each correction,typical characteristics of triple correction.

Long trade can be considered in the target zone shown for wave b,if we get a bullish reversal candle in that price zone and price crosses 14000 levels,on the upside 14760-15584 zone can be potential target zone wave z.

Disclaimer:Position should be build or exited on the basis of this analysis

7 Dis 2021

Nota

we are nearing end of an expanded flat correction post 5 wave impulsive rise.Now we can have two possible scenario which can unfold from here which are as follow's:

Scenario-1:Considering entire 5 wave impulsive up move as wave 1 of an higher degree and the flat correction as an wave 2 of higher degree,we can see start of an wave 3 from here. Hence tomorrow if we see daily close above 13435(9 day ema) then we can assume short-term reversal has taken place momentum has shifted on buying side.Then we can go long with today's low as initial stop-loss for a initial target of 14000.Further target's can be calculated once we confirm nature of rise as an impulsive.

Scenario-2:If up move from here is slow then we can assume rise from current level as wave X there by keeping current correction active and turning in to a complex correction.In this case also i am assuming that we will see short term reversal but up move would be slow and prices will overlap.Target and stop-loss on the upside will remain same.

Criteria for going long

1)Price should cross today's high and give close above it.
2)Price should also cross 9 day ema and should give close above it.

Long trade should avoided until both the condition is satisfied.

Reason for reversal from current level

1)price wise wave C has reached wave A extention target of 161% for an expanded flat correction.
2)we also have price action support of lower degree wave 4 around same level,shown by horizontal line which is coming @ 13150.
3)we can also see positive divergence forming on RSI which would be validated once RSI crosses 50 level.
4)We are seeing dragon fly doji sort of pattern on the candle stick front,and price crossing doji high will also be a sign of reversal.

On the other i feel downside will be limited from current level's so shorting should be avoided irrespective of prices continues to go down.

Disclaimer:This index is not tradable however views over here represents Pharma index in whole meaning a reversal in pharma index would be accompanied by reversal in pharma stocks,Position in stocks should not be build on the basis of the index levels mentioned over,individual stock charts should be analysed.Also this are just my views on the index hence position should not be build or exited solely on its basis as i am publishing this just for my future reference.Hope anyone reading this post find it to be helpful