COAL INDIA – Elliott Wave Analysis Trading Lounge Day Chart

COAL INDIA Elliott Wave Technical Analysis

Function: Counter Trend

Mode: Corrective

Structure: Gray Wave B

Position: Orange Wave 4

Next Lower Degree Direction: Gray Wave C

Wave Cancel Invalid Level: 543.16

The daily Elliott Wave analysis for COAL INDIA highlights a counter-trend scenario, with the stock currently in a corrective phase. The focus is on gray wave B, part of the broader orange wave 4 structure. The completion of gray wave A's decline signals the beginning of gray wave B, which typically involves a retracement before the next leg down.

This suggests that the current movement may be temporary and followed by another potential drop in price, as wave C develops. The level to watch closely is 543.16. A move above this threshold would invalidate the present wave count and suggest a change in the current outlook.

The analysis expects gray wave C to follow the end of wave B, pointing to a continuation of the bearish phase. The daily timeframe helps traders stay focused on short- to medium-term movements within the broader context.

This technical outlook offers valuable guidance for those considering short trades or managing long positions. Completion of wave B may present short-selling opportunities ahead of wave C’s projected decline. Traders should track common corrective formations and signals confirming a potential turn.

Risk management remains essential. Any breach above 543.16 would challenge the current bearish stance. The setup provides a methodical view of COAL INDIA’s price dynamics under Elliott Wave principles.

COAL INDIA – Elliott Wave Analysis Trading Lounge Weekly Chart

COAL INDIA Elliott Wave Technical Analysis

Function: Counter Trend

Mode: Corrective

Structure: Gray Wave B

Position: Orange Wave 4

Next Lower Degree Direction: Gray Wave C

Wave Cancel Invalid Level: 543.16

The weekly Elliott Wave analysis for COAL INDIA outlines a counter-trend structure, placing the stock in a broader corrective phase. The focus is on gray wave B, a part of the higher-degree orange wave 4 formation. Gray wave A appears to have ended, and gray wave B is currently unfolding, representing a temporary retracement in an overall downward structure.

This movement is typical within corrections, often leading to sideways or upward action before resuming the dominant trend. A key level to monitor is 543.16. Any breach above this would invalidate the current wave interpretation and suggest a possible shift in market dynamics.

From a long-term perspective, the analysis projects that gray wave C will follow gray wave B, pointing toward a renewed bearish move. This view assists traders in positioning within the broader market cycle, particularly as gray wave B progresses.

This analysis underscores the significance of wave degree relationships and offers insight into how intermediate corrective waves like gray wave B integrate into the overall orange wave 4. Traders should watch for familiar corrective formations such as three-wave structures or consolidations.

Maintaining effective risk management near the invalidation level is advised, especially as the stock navigates through this correction ahead of a possible downward continuation.

Technical Analyst: Malik Awais

Source: TradingLounge.com – Learn from the experts!

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