HDFC has shown an exceptional outperformance irrespective of market conditions and had seen unprecedented rise over the years.
Below is the chart with detailed analysis of Elliott wave counts clubbed with Time cycle and channels which was published in the monthly research report – The Financial Waves monthly update.
HDFC Limited Weekly Chart
Following was published in the monthly update-
HDFC has been a major player in the financial sector. The long term trend for the stock has been on the upside.
Elliot wave perspective- HDFC is a classic example of Impulse pattern as per Elliott wave theory. Prices are in primary wave …… There is some slowdown in momentum but the outlook remains bullish as long as the support levels near ……. remains protected.
Time Cycles: Every stock has its own cycle of bottoming and topping. We are showing …… weeks’ Time Cycle which has managed to capture major lows of this stock. The low formed in 2016 is still protected irrespective of sell off witnessed in domestic market as well as across globe. As of now we are in the second half of the cycle so range-bound action can be expected. Post the cycle low up move can be witnessed considering the past price behaviour.
Channel Technique: This technique is important in identifying support and resistance zone. In weekly chart of HDFC we can see that prices have reversed from its blue lower trend line multiple times which shows how important this blue support trend line is! Also the intermediate degree wave 2 low was made on this trend line but prices failed to break this trend line and reversed on upside moving back towards channel resistance inform of wave 3. So long term investors can use this lower blue trend line as important support to capture up move.
So considering the overall performance of HDFC Ltd and considering the above various techniques the trend for this stock is ….
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