4 Feb 2021 ● 02:26 PM
Someone asked me whether wave 3 for BHEL can extend, also last week someone asked me whether it can be an inverted head and shoulders pattern. I'm not sure if this is what was being referred to. While the neckline is extremely steep and downward slanting, technically it is not wrong because the left shoulder and right shoulder do overlap with each other. After a break out the most recent pullback has touched the neckline before starting affords again. If I take the October to January rally as a wave I then III=I=55. And if I measure the size of the head and add it to the neckline breakout point then we end up at 90. As of now, all I can say is that wave 3 supposed to subdivide into 5 waves and we are in the 3rd wave. The only way to know how far it actually goes is to count the subdivisions and 2 trail it with higher lows and a moving average.