How to Identify High-Probability Trades Using Elliott Wave and Keltner Channel

The effectiveness of blending Elliott Wave with price action is evident in JB Chemicals and Pharmaceuticals, where the rally unfolded in perfect sync with wave counts, supported by a Keltner Channel breakout and strong KST (Know Sure Thing) confirmation.

JB Chemicals and Pharmaceuticals Weekly Chart with Elliott wave

JB Chemicals and Pharmaceuticals Daily Chart with Keltner channel and KST

Elliott Wave Structure: Primary Wave (5) Underway

• From a wave perspective, the recent corrective phase unfolded as Primary Wave (4).
• This corrective wave was completed in April 2025.
• The current rally marks the start of Primary Wave (5), suggesting continuation of the broader bullish trend.

Keltner Channel Breakout Adds Strength

• Unlike Bollinger Bands®, which use standard deviation, the Keltner Channel is based on Average True Range (ATR).
• Historically, JB Chemicals has delivered strong rallies following Keltner Channel breakouts
• 14 September 2020: Break above 472.55 led to a 70% rally
• 10 July 2023: Similar breakout resulted in a 40% upside move
• Now prices are on the verge to give breakout of it again.

KST Momentum Confirms Upside Acceleration

• The KST Momentum Indicator aligns well with the Keltner Channel breakout.
• Post crossover KST lien is comfortably trading above the zero line, indicating strengthening upside momentum.
• This confluence creates a high-probability setups.

Fresh Breakout Signals a New Upside Phase

• JB Chemicals and Pharmaceuticals Ltd has decisively broken above its prior swing high of 2030.
• The stock has gone on to register a new all-time high at 2090.6 in today’s session, indicating the beginning of a fresh upside wave.

Outlook and Strategy: Buy on Dips

• The overall trend for JB Chemicals and Pharmaceuticals Ltd remains clearly bullish.
• Short-term oscillators are hovering near the overbought zone.
• Buy on dips remains the prudent approach.

Key Levels:

• Resistance: 2300-2500 levels
• Support: 1835 level

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