PI INDUSTRIES good to buy?
The daily chart of PI INDUSTRIES shows that the stock is in wave 4 of an impulse.
Wave 3 is a terminal impulse in this case as it is less than 161.8% (see fib extension in green).
And as per the rule, wave 4 of any terminal impulse can overlap with wave 1. Also, wave 4 can retrace to 50%.
We have done detailed counting, and we can see that the price is near 50% of the fib retracement of the impulse.
At this level, we can see wave C of wave 4 is standing at 127% extension. It is possible that the price can fall a little further up to 161.8% extension. (See fib extension in blue).
The conclusion is that an aggressive trader can enter between the zone of 50% (see in black) fib retracement and 161.8% (see in blue) fib extension.
For conservative entry, one can wait for the price to break and sustain above 38.2% (see in black).
The stoploss for both entries will be below 61.8% (see in red). This is quite logical because wave 4 will never close below 61.8%
Meaning, the 61.8% level is an invalidation point for all this counting and the price will fall further if it breaks 61.8%
This analysis is based on Elliott wave theory and Fibonacci.
This analysis is for educational purposes only.
This is not any buying recommendation. Please always do your research before taking any trade.
Wave 3 is a terminal impulse in this case as it is less than 161.8% (see fib extension in green).
And as per the rule, wave 4 of any terminal impulse can overlap with wave 1. Also, wave 4 can retrace to 50%.
We have done detailed counting, and we can see that the price is near 50% of the fib retracement of the impulse.
At this level, we can see wave C of wave 4 is standing at 127% extension. It is possible that the price can fall a little further up to 161.8% extension. (See fib extension in blue).
The conclusion is that an aggressive trader can enter between the zone of 50% (see in black) fib retracement and 161.8% (see in blue) fib extension.
For conservative entry, one can wait for the price to break and sustain above 38.2% (see in black).
The stoploss for both entries will be below 61.8% (see in red). This is quite logical because wave 4 will never close below 61.8%
Meaning, the 61.8% level is an invalidation point for all this counting and the price will fall further if it breaks 61.8%
This analysis is based on Elliott wave theory and Fibonacci.
This analysis is for educational purposes only.
This is not any buying recommendation. Please always do your research before taking any trade.
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