Nearly all major stocks in NIFTY & NIFTY JR are going through a Wave (4) correction. It makes me wonder Elliott waves help forecast there's going to be some trigger or an event, which perhaps no other forecast tool is able to. I say this because TCS is going through a correction phase since last week of Jan'21. Most banking stocks terminated wave (3) and commenced correction since 16-Feb. That's about the same time when the second wave of COVID hit Maharashtra and then within weeks it has become a national calamity. Isn't it telling something..??
A triangle pattern is not always known in advance because is uses up time. One has to wait for price action to unfold to be able to confirm that the correction is indeed a triangle. TCS increasingly appears to be tracing a barrier triangle (outer line flat, inner line sloping towards larger trend). We will know it for 100% in next few days as price action unfolds. If TCS stock price were not to be a triangle pattern at this time, I would have expected a brisk fall in the price downward instead of weakly bouncing back. So, TCS is very likely tracing a triangle.
Suggested course of action
I think it's a risk worth taking as the upside is considerable, if TCS continues to move ahead in wave (d) in the coming days, which at this point in time is highly probable. It's good time to go long with a short to medium term perspective and exit when the price hits the region marked (d) level.
Caveat:
Should TCS careen downwards in next few days retracing back below the level marked as (c), then the triangle hypothesis is invalidated. In that case, we close our position, take a small hit and watch out for the next move. (I would circle back in that case with an update).
A triangle pattern is not always known in advance because is uses up time. One has to wait for price action to unfold to be able to confirm that the correction is indeed a triangle. TCS increasingly appears to be tracing a barrier triangle (outer line flat, inner line sloping towards larger trend). We will know it for 100% in next few days as price action unfolds. If TCS stock price were not to be a triangle pattern at this time, I would have expected a brisk fall in the price downward instead of weakly bouncing back. So, TCS is very likely tracing a triangle.
Suggested course of action
I think it's a risk worth taking as the upside is considerable, if TCS continues to move ahead in wave (d) in the coming days, which at this point in time is highly probable. It's good time to go long with a short to medium term perspective and exit when the price hits the region marked (d) level.
Caveat:
Should TCS careen downwards in next few days retracing back below the level marked as (c), then the triangle hypothesis is invalidated. In that case, we close our position, take a small hit and watch out for the next move. (I would circle back in that case with an update).