Time Cycle has been working amazingly well in capturing major trendy move. We have been using this technique combined with Elliott wave techniques to find good trade setups. Cycles help in identifying when the next major lows or high s will be made.
Below is the chart showing detail analysis using Elliot wave and Time Cycle and how we captured a move towards 2145 levels.
HDFC Bank daily chart:
As seen on daily chart, prices are moving in the form of wave b of Flat correction pattern which is forming Complex correction pattern internally. We are showing 70 Day’s Time Cycle on the chart which has been capturing important lows. Post the cycle low prices have currently witnessed upmove. Over the medium term an important support is placed near 2050 levels.
As shown on hourly chart, prices completed the second set of correction in the form of Diametric post which we saw wave x on the downside. The current upmove is in the form of wave (a) on the upside. If we carefully observe the RSI indicator we can see that the overbought and oversold zone for the indicator is near 28 and 71 zone. Previously also post the RSI reached near 70 zone some selling was witnessed.
In short, trend for HDFC Bank is positive and break above 2120 can take prices higher towards 2150 as long as 2070 remains intact on the upside.
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