IDFCFIRSTB : Poised for a Wave C Reversal or Deeper Dive?1. Key Analysis and Levels
Wave C Completion Zone (₹63-61):
Based on Elliott Wave analysis, this marks the end of the corrective phase (Wave C).
This range aligns with a high-probability demand zone, where buyers typically enter aggressively.
Liquidity and Consolidation Zone (₹61-67):
Current price behavior indicates consolidation, suggesting accumulation by buyers or preparation for a reversal.
First Target Zone (₹78-80):
Represents the extended retracement of Intermediate Wave B, a logical zone for profit-taking.
Second Target Zone (₹86-88):
A deeper retracement of the Primary Wave B, achievable if bullish momentum sustains beyond the first target zone.
2. Trade Setup
A. Long Trade Setup:
Why Long?
The price appears to have found support in the Wave C completion zone with signs of consolidation, signaling a potential reversal.
Elliott Wave theory suggests the next leg (Wave 1 or Wave A) to the upside.
Entry: Around ₹64, after a confirmed breakout from consolidation or bullish candlestick patterns (e.g., hammer or engulfing).
Stop Loss: Below ₹61 to account for demand zone failure.
Targets:
₹78-80: First resistance level at the extended retracement of Wave B (Intermediate).
₹86-88: Next significant resistance zone based on Primary Wave B retracement.
B. Short Trade Setup (If Demand Fails):
Why Short?
A breakdown below ₹61 indicates that the Wave C completion zone is breached, suggesting continuation of the downtrend.
This breakdown could trigger a deeper decline toward the next structural support levels.
Entry: Below ₹61 after confirmation of breakdown with volume.
Targets:
₹58: Immediate support zone.
₹52-55: Deeper structural demand area.
Stop Loss: Above ₹65 to avoid being caught in a false breakdown.
3. Explanation of Analysis
Wave C Completion:
In Elliott Wave theory, Wave C often marks the end of a corrective phase, making it a high-probability entry point for reversals.
Liquidity Zone (₹61-67):
Current consolidation reflects market participants accumulating positions, often seen before a major price move.
Risk-Reward Dynamics:
The defined stop loss and target zones provide favorable risk-to-reward ratios, making the trade setups attractive.
4. Confirmation Signals
For Long Entry:
Bullish price action in the ₹63-64 range with rising volume.
A breakout above ₹67 signals momentum shift to the upside.
For Short Entry:
A strong daily close below ₹61, accompanied by high volume and bearish sentiment.
5. Risk Management
Risk should be limited to 1-2% of your portfolio per trade, adhering strictly to stop loss levels.
Consider scaling out at the first target zone to lock in partial profits while trailing stop loss to protect gains.
Why This Plan Works
This trading plan integrates Elliott Wave theory, demand zone dynamics, and logical retracement levels to structure trades with both upside potential (if reversal occurs) and downside readiness (if support fails).
