Coal India

Coal India is bouncing back after the 61.8% retracement in wave 2, where wave 2 was an expanded flat. Wave 3 up is likely to be another 5 wave impulse just like wave 1. Wave 3 can also be an extended move looking at the inverted head and shoulders pattern on the chart below where the head is the 5th wave at the October bottom and the left shoulder was a triangle. Volumes at the right-hand side of the head so far fit the structure. Volume should also expand in wave 3 especially as we attempt to break above the neckline that hundred and 48. The size of the head added above the neckline gives us a level of 204 as the usual implication of an inverted head and shoulders pattern.