8 Oct 2020 ● 02:56 PM
Value Wave Investment discussion
Long term after completing wave Z down of the multi-year bear market, BHEL completed its first wave up and was in wave 2 for weeks. At the lows in wave 1 dividend yields were almost 8-9%[ value]. And wave 2 at 61.8% near 28, is a good level for a higher low to form. The daily momentum on the chart just crossed over to the buy-side after a positive divergence in the RSI indicator. A high probability that wave 2 ended and wave 3 can start. If wave 3 is equal to wave 1 then we get a level of 57. The guideline of equality solves many problems in EW analysis. It allows for easy judgement of risk-reward at the start. Wave C of 2 down on this chart has 9 waves so far which is an impulse wave and therefore can be considered complete unless the low of 27.65 made today is broken.