Elliott Wave (3) Awakening: Laxmi Organic Industries Ltd.

22 ביוני

Laxmi Organic Industries Ltd. has completed wave (1) in blue Intermediate degree on the weekly chart from its inception till the peak in September 2021. Wave (2) has completed at the bottom in June 2024. We are now possibly starting to unfold wave (3) in blue Intermediate degree on the weekly chart, which is generally a strong impulse wave.

Wave (3) Characteristics and Strength:

- Strong Impulse: Wave (3) is typically the most powerful and extended wave in the Elliott Wave cycle, characterized by strong price movements and high trading volumes.
- Fibonacci Extension Target: The ideal target for wave (3) is the 161.8% extension of wave (1). Using the Trend-based Fibonacci Extension tool, this projects a price target near 1000.
- Subdivisions: Wave (3) is expected to subdivide into five smaller waves (minor degree), each representing a smaller impulse move within the larger wave.

Current Price Action:

- Current Price: 265
- Key Levels:
- Invalidation Level: 220 (last swing low)
- Breakout Confirmation: 277 (a break and close above this level will confirm the start of wave (3))

Technical Indicators:

- Bullish Divergence: At the bottom in June 2024, double bullish divergence was observed, signaling potential reversal.
- Dow Theory Confirmation: We are waiting for the first higher high and higher low formation to confirm the bullish impulse. This pattern will strengthen the case for wave (3) initiation.

Risk-Reward Ratio:

- Risk: Very low, with the stop-loss set at the invalidation level of 220.
- Reward: Potentially huge, with a target of 1000 or more, aligning with the 161.8% Fibonacci extension of wave (1).
- Risk-Reward Ratio: Excellent, considering the low risk and high reward potential.

Trading Strategy:

- Entry Point: Consider entering a position now while the price is at 265, with a stop-loss at 220.
- Confirmation Entry: A more conservative entry can be made once the price breaks and closes above 277.

Conclusion:

Laxmi Organic Industries Ltd. appears to be in the early stages of wave (3) in blue Intermediate degree. Given the characteristics of wave (3) and the current technical setup, this presents an attractive trading opportunity with a favorable risk-reward ratio. Monitoring the price action for a break above 277 will provide further confirmation of the bullish impulse wave.

I am not Sebi registered analyst. My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
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Hope this post is helpful to community
Thanks
RK💕

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The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.