4 Feb 2021 ● 02:08 PM
Muthoot Finance has a very similar setup to Manappuram Finance which has more price history given that it has been listed for a longer period of time. Thus, Muthoot is also on the verge of starting wave 3 of 3 and might have done so the last few days because prices have been consolidating for several months, and the weekly momentum has gone back to the 0 line. Bollinger bands have tightened showing a contraction in volatility which is now ready to expand again. The daily momentum crossed over to the buy-side and a close above the 20 DMA at 1200 will add weight to the upward momentum. On the weekly chart, the 40 week average at 1100 was strong support and we need to close above the 20-week average at 1184. After that, we would test the wave 1 high at 1405, as wave 3 progresses. Wave 3 would be equal to wave 1 at 3200.