A Rally Born in Silence: The Canara Bank Setup

Canara Bank – Multi-Timeframe Impulse Reloaded

On the 3-month timeframe, Canara Bank is staging what looks like a textbook long-term Elliott Wave impulse. With Wave (IV) bottoming out around ₹15.15 and a roaring rally taking us into Wave (V), the broader structure suggests that this could be the start of a generational uptrend, aiming toward the 2.618 extension near ₹206.

Dropping down to the daily chart, things get even more compelling. The move off the March 2025 lows at ₹78.60 is showing all the signs of a fresh impulsive structure. That low aligns precisely with the higher-degree Wave (IV), suggesting the beginning of Wave (V) is already underway. What’s particularly interesting is how the current rally is unfolding — the green Wave 3, which started from ₹83.70, appears to be extending. It has already subdivided into a clean internal five-wave structure, with blue subwaves 1 through 4 in place and blue wave 5 in progress.

This kind of extended third wave is not only typical but often the most powerful part of the move, carrying the strongest momentum. The current wave is aiming toward the 1.618 projection zone around ₹138, which would be a fitting cap for an extended third. Once this fifth subwave of green 3 completes, a corrective green Wave 4 would be due, likely shallow given the strength of the third wave, followed by one final push in green 5.

On the risk side, the structure remains intact as long as price holds above ₹102.63 — the invalidation level for the current count. A break below would suggest the impulse failed and could force a reassessment of the bias. Until then, both the short-term and long-term wave counts remain firmly aligned to the upside, with momentum backing the structure on multiple timeframes.

Chart will be updated as price action evolves.

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.