Samvardhana Motherson: Breakout or Double Top?

Samvardhana Motherson has been carving a clean Elliott Wave structure since bottoming at ₹71.50.

• Wave count: Wave 1 peaked at 108.17, followed by a textbook Wave 2 retracement to ₹89.86 (near the 0.5 Fib).
  
• Current leg: Price has surged from Wave (ii) into 108, likely completing Wave (iii) of 3. A short Wave (iv) pullback would be natural before an eventual breakout in Wave (v) of 3.
  
• Momentum factors: Strong volume surge supports the impulsive setup, while RSI in the overbought region suggests cooling off in the near term.
  
• Moving averages: Price is now above both SMA50 and SMA200, the trend bias has turned positive, and moving averages may act as support on any pullback.
  

Summary: 108 is the make-or-break level. A brief consolidation is possible, but a sustained breakout above this zone in Wave (v) would confirm the Wave 3 extension.

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.