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.