All you need to know about SBIN; Channel breakout after 2010!
Since 2008, SBI has been trading in a slow moving channel of 3% (less than inflation!). For the first time since 2012, the stock has convincingly broken out of that channel. It took >6 months to breakout, retest & finally convincingly breakout of the channel. As SBI has never been in this region before, it is hard to guess what will happen now. Wave theory to the rescue
During the pandemic selloff, we can see the classic ABC correction. Since then, the stock has formed a perfect 1-2-3-4-5 impulse wave pattern. Wave 3 is above the 161.8% extension of wave 1 & is at the top of RSI. I believe we are done with wave 5 as we are above the conservative estimate of ~485 (length of wave 1 placed at wave 4 low) & we see a clear divergence in RSI. Also, the volumes are considerably lower. We still need to wait for confirmation as we are still below 161.8% extension of wave 3.
Watch out for a correction to 100/200d ema &/or the upper trendline before this stock starts moving up again.
Sell below 472 and be ready to buy on any indication of a reversal from 100d/200d ema or the upper trendline. Stock to move slightly down & sideways till then
During the pandemic selloff, we can see the classic ABC correction. Since then, the stock has formed a perfect 1-2-3-4-5 impulse wave pattern. Wave 3 is above the 161.8% extension of wave 1 & is at the top of RSI. I believe we are done with wave 5 as we are above the conservative estimate of ~485 (length of wave 1 placed at wave 4 low) & we see a clear divergence in RSI. Also, the volumes are considerably lower. We still need to wait for confirmation as we are still below 161.8% extension of wave 3.
Watch out for a correction to 100/200d ema &/or the upper trendline before this stock starts moving up again.
Sell below 472 and be ready to buy on any indication of a reversal from 100d/200d ema or the upper trendline. Stock to move slightly down & sideways till then
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