Along with basic technical tools, application of Elliott wave can provide high probable trade setups. Most of the times market moves in corrective trends and there are rare occasions where impulsive pattern we get to see. Zigzag, Flat, Triangle, Double and Triple correction are the different corrective patterns.
Below we have shown 60 mins chart of JSW Steel which has formed Zigzag correction pattern. Zigzag correction is 5-3-5 pattern which provides a good trading opportunity.
JSWSTEEL 60 mins chart: (Anticipated today morning 9.00 am)
JSWSTEEL 60 mins chart: (Happened till now)
JSW steel is among the late participant in the rally and showed up move only in the previous session. Entire metal space is behaving this way and underperforming Nifty as of now. This rise is only a pullback in form of s wave (b) and post its completion wave (c) will start down.
On hourly basis, we can see a clear 3 wave rise which looks to be Zigzag pattern. The minimum target is achieved as per this pattern and for any positive extension move above 185 is must. On downside break below 160 will indicate start of intermediate degree wave (c) on downside.
In short, JSW Steel is at crucial juncture. On downside break below … will be a sign of concern and indicate resumption of bigger degree down move.
P.s: Levels are purposely hidden. Kindly use this research solely for understanding the concepts.
Happened: The above mentioned research clearly indicates that the Elliott wave – Zigzag correction pattern was under formation. Prices behaved in same manner and move lower post achieving the target of the pattern.
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