Is VEDL Ready to Soar? Elliott Wave Analysis Suggests Yes

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Technical Analysis of VEDANTA LTD. (VEDL) Based on Elliott Waves

This analysis is based on Elliott Wave theory and is for educational purposes only. It does not constitute financial advice.

Elliott Wave Analysis:

The provided chart of VEDANTA LTD. (VEDL) suggests a bullish trend based on Elliott Wave principles. The analysis identifies a potential impulse wave structure, which typically consists of five waves.

Elliott Wave Analysis Update

We're currently within Wave (3) in blue intermediate degree, with subdivisions marked as Red 1 to 5 Minor degree, Having completed Red 1 to 3, we're nearing the end of Red 4.

Key Takeaways:

1. Post-Red 4 completion, we expect an upward move to complete Red 5, targeting 1.618 Fibonacci extension (measured from Blue Wave (1).
2. Wave 5 (Red) is the final leg of Wave (3) in Blue which is of intermediate degree.
3. Overall, the outlook remains bullish.

Important Principle:

As per Elliott Wave Theory, Wave 4 cannot overlap Wave 1. This means Red 4 cannot enter the territory of Red Wave 1.

Nearest or current Invalidation Level:

If the price enters 471 (Wave 1 high), our labelled view will be negated, and we'll need to reassess the chart.

Expected Outcome:

If the invalidation level holds, our view remains intact, targeting 537 or nearby.

Actionable Insights:

- Monitor Red 4 completion
- Watch for Wave 5 unfolding
- Keep 471 as the critical invalidation level

Right Direction:
The annotation "Right Direction ↑" suggests that the overall trend is expected to be upward.

Invalidation Level:
The level of 424 is identified as an invalidation level. A break below this level would negate the bullish outlook and suggest a potential reversal.

Target:
While a specific target is not provided in the chart, a potential target for wave 3 could be around the 1.618 extension level (537.55) based on the length of wave 1. However, this is a rough estimate and subject to change based on market conditions.

Overall Outlook:

Based on the Elliott Wave analysis, VEDANTA LTD. (VEDL) appears to be in a bullish uptrend. The market is expected to continue rising, with a potential target around the 537.55 level. However, it's crucial to monitor the price action closely and be prepared to adjust the analysis if the market's behavior deviates from the expected pattern.

Remember: Elliott Wave analysis is a complex tool that requires practice and experience. It's essential to approach it with caution and always consider the potential risks involved in trading.

I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.

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Hope this post is helpful to community
Thanks
RK

Disclaimer and Risk Warning.

The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.