Dr Reddy: Combining Elliott wave with Time cycle, You cannot Miss!Jun 26, 2023
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We published about DR Reddy in April 2023 and predicted a possibility of good returns in the coming months in our Monthly Research report. Check out the research we had published on 21st April 2023 itself – This stock has managed to hold its gain and made high of 5074. It has potential to achieve our target in coming weeks. See here detail research on Dr reddy.
Dr Reddy Weekly chart
Elliott Wave analysis: Elliot wave is simple 5-3-5 pattern. This stock is moving in a classic impulse pattern. Wherein, primary wave 2 has completed on the downside near 1900 levels. Since then wave 3 is moving on the upside which is considered as a strongest wave. Wave 3 is subdividing in nature and currently intermediate wave iii is moving on the upside.
Indicator Analysis: Prices have given breakout of the consolidation which lasted for more than 2 months. So, we are expecting a good rise from now on. Along with this, prices have bounced back on the upside by taking support of the cloud keeping overall tone positive. Any dip towards the cloud can be used as a buying opportunity. Also, prices have bounced back on the upside by taking support of the lower end of the channel which keeps bias positive. Nearest support can be placed at 4400 levels. Recently stock has bounced back on the upside by taking support of the multi-year channel.
Time Cycle: We have applied Time cycles in order to more mark the important lows and also to get clarity about the direction. Here it has been following 82 period Time cycle very well. The recent low which was formed on 19th December 2023 was exactly near our cycle which was near 4200 level. Also, cycle has already turned on to buy side after breaking swing high of 4640. So, now, price and time along with Elliott wave all are in sync and suggesting possibility of a good up move in coming sessions.
In a nutshell, Trend for DR Reddy looks positive. Over next few weeks if 4400 remains protected then stock can move towards 5400 or higher. Any breach below 4400 will result into a correction as it will also breach support of the channel.
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