SAIL IS TRADING IN 5TH IMPULSIVE WAVE.UPSIDE OF 10% POSSIBLE.
Elliott Wave theory suggests that stock prices move in clear trends. These trends can be
classifi ed in two parts i.e.
A. Dominant trend (Five wave pattern)
B. Corrective trend (Three wave pattern)
A. Dominant Trend (Five wave pattern)
Basically Dominant Trend consists of fi ve waves. These fi ve waves can be in either direction,
up or down.
When five waves directions is up then advancing waves are known as impulsive waves and
declining waves are known as corrective waves.
Similarly when five waves directions is down then declining waves are known as impulsive
waves and advancing waves are known as corrective waves
Currently Sail is trading in its fifth impulsive wave. As the pattern suggest to complete fifth wave which may be equal in length of Wave -1 , which gets complete at 91 levels.
Also open interest suggest huge long build up in july series.
Also 200 EMA and SMA on hourly charts providing a good solid support.
MACD has shown clear positive divergence in comparison with the prices.
RSI has shown that the momentum is picking up.
With it, a falling channel breakout is observed on hourly charts.
Moreover a bullish Marubozu candle on daily charts confirms the bullish trend is in phase.
Upside potential looks to be 86-88-90… STOP LOSS for the position is below 80 closing basis.