Jain Irrigation Elliottwave : CMP 119. Anatomy of a trade setup.
Clear and present opportunity. Starting with the top-down approach – 2 month chart (each candlestick is 2 months). 5 waves clearly present to make up Cycle degree wave 1 (from year 2000 to 2010) and 3 waves down (from 2010 to 2016). So long term trend is up on Cycle Degree – thats been established clearly. The trade setup, picture perfect that it is, is mentioned in detail at the end of this post.
Now looking at the weekly chart, from Feb 2016 to Oct 2016, also 5 waves up visible, and a 3 wave down in a complex double correction in WXY. So we have wave 1 up on Primary Degree also with this clear 5 up, 3 down. This too is established clearly.
Drilling down to the 2 hour chart, from Nov 10 2017 to today Nov 30, we have a beautiful and clear 5 waves up, with the 3rd wave subdividing into another 5 waves. So now we have wave 1 up on Minor Degree. We are awaiting a small 3 wave down to about 110 levels before price takes off to the upside in a big way.
We now have a situation of wave 1-2-1-2-1-2 – and are awaiting a 3rd of a 3rd of a 3rd wave. This move up will be extrememly strong, and should easily take out the all time high of 264.