IPCA Labs Elliottwave Count :

This is a stock that seems to follow elliottwave guidelines with almost mathematical precision.

Below is a monthly chart of Ipca. Wave 4 on primary degree appears to be complete in Aug 2017 at price of 400. Notice that Wave 3 on primary degree ended at 906 in Feb 2014, so its been in a clear downtrend since then losing more than half its value.

Within primary wave 3 that ended at 906, notice the clear 5 wave sub-divisions on intermediate degree. __The Key takeaway from this is that the 5th wave is the longest as compared to waves 1 & 3__ (676.70 points as compared to 292.99 points of wave 3 and 111.80 points in wave 1).

An elliottwave guideline states that when the 5th wave is the longest, price tends to retrace into the territory of the __1st wave of this 5th wave, and usually completes its correction at the base of wave 2 of said 5th wave.__

__In this case the base or end of wave 2 of this 5th wave was at 401.10 (Nov 2012).__ Notice where the 3 and a half year correction ended – on Aug 11, 2017 ** at precisely 400 **!!

At 400 levels in Aug 2017, it was a fairly safe entry based purely on elliott. As an added confirmation, Wave Y of the correction was exactly 0.61 times Wave W past Wave W (a common fibonacci measurement in corrections).

(As an added aside for elliottwave theoreticians, within this intermediate degree 5th wave of 676 points, there was also a further 5 wave subdivision where minor wave 3 was the longest wave. The Elliottwave principle states that when the 3rd wave is the longest, waves 1 and 5 tend to be related by a measure of equality. In this case with minor wave 3 being 342.95 points, minor wave 1 and minor wave 5 were both exactly 264 points. Stunning mathematical precision !!

If any further confirmation was needed, price then proceeded to provide it by rising in an impulsive 5 waves from its Aug 11th low of 400 up to 596 in the following 40-45 days followed by a 3 wave correction that appears to have completed at 444 on Oct 24. In keeping with Ipca’s tendency for mathematical precision, this minor correction too displayed this tendency with wave A = wave C at exactly 112.90 points.