Bajaj Finance Update
24 Aug 2020 ● 01:48 PM
These charts have just taken time to develop. But we did not fall below the point marked as wave 2. Except for one thing that the low point is not the end of wave 2. This is not apparent on daily charts where prices are rising but look at the bottom where volumes continued to decline till Friday. That is telling us that everything before it is part of the consolidation.
The hourly chart explains this more clearly. The low point is not wave 2 and marked as W. The rally from W in fact is not a 5 waves up move and so it is marked as X and then the move sideways from there is a triangle shown in blue lines. If you have read Elliott Wave Principle then you know the W-X-Y structure and that is what has happened in wave 2, where the last leg, in this case Y, ends as a triangle. The triangle is where wave 3 up starts.