STATE BANK OF INDIA Elliott Wave Analysis – Trading Lounge Daily Chart
SBI Daily Chart Timeframe (Daily Timeframe)
SBI Elliott Wave Technical Overview
Function: Counter-Trend
Wave Mode: Corrective
Wave Structure: Orange Wave 2
Current Position: Within Navy Blue Wave 5
Next Wave Expectation: Orange Wave 3
Key Insight: Completion of Orange Wave 1 confirmed; Orange Wave 2 now in development.
Market Insight – Daily Elliott Wave Perspective
The State Bank of India's daily chart shows a corrective Elliott Wave pattern, indicating a counter-trend phase inside a larger bearish move. The development of Orange Wave 2 within the ongoing Navy Blue Wave 5 suggests a temporary upward retracement following the completion of Orange Wave 1.
Short-Term Market Behaviour
This current corrective wave displays limited upside potential. The upward movement forming Orange Wave 2 likely represents a brief pause before the expected decline resumes in Orange Wave 3. Traders should anticipate short-term price fluctuations while this wave completes.
Trading Strategy and Risk Management
It's essential to monitor price action carefully for signs that Orange Wave 2 is concluding. This signal would likely precede a more significant move downward in Orange Wave 3. Despite the temporary bounce, the broader trend remains bearish. Risk controls and stop-loss strategies are critical during this counter-trend correction.
STATE BANK OF INDIA Elliott Wave Analysis – Trading Lounge Weekly Chart
Technical Elliott Wave Overview (Weekly Timeframe)
Function: Trend
Wave Mode: Impulsive
Wave Structure: Navy Blue Wave 5
Current Position: Gray Wave 5
Next Wave Expectation: Continued Navy Blue Wave 5 progression
Key Insight: Navy Blue Wave 4 completed; Wave 5 currently progressing.
Market Insight – Weekly Elliott Wave Perspective
The weekly chart reflects a bullish impulsive structure for State Bank of India. This ongoing movement within Navy Blue Wave 5 belongs to the final Gray Wave 5 leg, suggesting the stock is in the last stages of an extended uptrend.
Medium-Term Market Behaviour
The momentum remains upward, driven by an impulsive Elliott Wave structure. However, as the fifth wave develops further, traders should stay alert for signals of trend exhaustion. These could include slowing price momentum or bearish divergence.
Trading Strategy and Risk Management
A potential final push higher may conclude this five-wave cycle, paving the way for a broader correction. Traders should approach new entries cautiously and watch for reversal indicators. Strategic risk management and profit protection are essential as the bullish trend matures.
Technical Analyst: Malik Awais
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