Markets always has tendency to fill gap zones.
If you draw fib extensions / retracements on previous few swings , every 1.618 extension ends up in our marked zone
1618 is more valid ratio & we can expect market to move up after reaching the zone.
ABCD pattern completion also in same zone.
This is 4h chart of SBIN so will take time to complete, just keep it...
Lets keep patterns, triangles and Wave theory aside for sometime.
Lets keep it simple for State Bank of India , as you can clearly see simple trend continuation and we are planning to buy on the pull back completion.
Some may feel that how can we be so sure ? Well, as per my rule book trend continuations with good risk :reward are valid enough.
Please check...
SBI looks to have entered into a trend reversal phase with a 5wave count which can potentially be wave 1 of a bigger wave cycle. wait for a wave 2 pullback, rs170 can be a good price to enter. holding period 1year approx.
SBIN is trading at the short term lower channel and at the old demand area. Need to observe the price action.
check the charts for trades possible from this level. Need to wait for conformation of move.
