HDFC Bank Elliott Wave Cycle From 2009 Getting Mature

HDFC Bank Limited (HDB), Housing Development Finance Corporation, is an Indian banking and financial services company headquartered in Mumbai, India. It has 88,253 permanent employees as of 31 March 2018 and has a presence in Bahrain, Hong Kong, and Dubai. HDFC Bank is India’s largest private sector lender by assets. It is the largest bank in India by market capitalization as of February 2016. It was ranked 69th in 2016 BrandZ Top 100 Most Valuable Global Brands.

HDFC Bank structure of the rally from the all-time low is taking the form of an Elliott Wave Impulse and today, we will present the Long-term and mid-term Elliott Wave Analysis of HDFC Bank and also look at the upside targets after it broke above July 2018 peak (2220). HDFC Bank is part of NSE.

HDFC Bank Weekly Elliott Wave Analysis

Weekly chart shows HDFC Bank stock to be still within wave ((III)) from the all-time low when wave (I) ended at 1128 (July 2015), wave (II) ended at 925.80 (February 2016), wave (III) ended at 2220 (July 2018) and wave (IV) completed at 1885 (October 2018). It has already made a new high above July 2018 peak suggesting wave (V) of ((III)) is in progress and should ideally reach an area between 2462 - 2688 to complete wave ((III)) before it starts a larger pullback in wave ((IV)) to correct the cycle from 2009 low and then resume the rally again. Trend is extreme as of now but there is still room for further upside within the cycle from January 2019 low and hence we don't recommend the selling, short-term traders would still be looking for buying opportunities in intra-day dips. Mid-term traders, however, would ideally wait for a pullback in red wave IV and next swing trading opportunity would be seen during wave ((IV)) pull back.

(Click on image to enlarge)

HDFC Bank Weekly Elliott Wave Analysis

HDFC Bank Daily Elliott Wave Analysis

HDFC Bank Daily chart shows the structure of the move up from October 2018 low i.e. wave (IV) low. We can see that the stocks has reached 100% extension of wave I related to wave II but it appears to be still in 3 waves up from the red II low and is in need of a pullback and another high to complete red wave III. Afterwards, a pullback in wave IV would be expected to correct the cycle from 2022 (January 2019) low and another high to complete wave V of (V) and the black wave ((III)) which should mark the end of cycle from 2009 low and could then see a rollover process starting.

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