STATE BANK OF INDIA Elliott Wave Analysis – Trading Lounge Daily Chart

STATE BANK OF INDIA Stock Daily Chart Analysis

STATE BANK OF INDIA Elliott Wave Technical Outlook

FUNCTION: Counter-Trend

MODE: Corrective

STRUCTURE: Orange Wave 2

POSITION: Navy Blue Wave 5

DIRECTION NEXT HIGHER DEGREES: Orange Wave 3

DETAILS: Completion of Orange Wave 1 suggests Orange Wave 2 is currently forming.

Technical Overview

The daily chart for State Bank of India (SBI) presents a corrective wave structure according to Elliott Wave analysis. Price movement indicates a counter-trend setup, with Orange Wave 2 developing within the broader pattern. This corrective phase is nested within Navy Blue Wave 5, implying the final leg of a broader downtrend may be underway. If Orange Wave 2 concludes soon, Orange Wave 3 could initiate a new bullish phase.

Market Implications

Recent price action shows the likely end of Orange Wave 1 and the onset of Orange Wave 2, a classic corrective wave. These phases often represent temporary retracements within larger trends. In this case, a potential upward move might unfold before the dominant downtrend resumes. As this setup is corrective and lies within Navy Blue Wave 5, it may signal a transitional phase toward a major reversal. Traders should watch for signs that Orange Wave 2 is nearing its end, as this could set the stage for a new upward impulse wave.

Trading Strategy

The current wave structure suggests that SBI may offer short-term buying opportunities within this corrective phase. However, as the broader trend remains uncertain, traders should proceed with caution. The conclusion of Orange Wave 1 provides a structural base for interpreting the ongoing correction. Since corrective waves are typically more volatile and less directional than impulsive waves, close monitoring is necessary. Adopting tight risk management is essential while navigating this less predictable market phase.

This Elliott Wave evaluation gives a clearer view of SBI’s position within the cycle. Identifying the completion of Orange Wave 2 is critical for forecasting potential trend shifts. Traders can use this technical outlook to assess opportunities and manage risk effectively as SBI's market behavior evolves.

STATE BANK OF INDIA Elliott Wave Analysis – Trading Lounge Weekly Chart

STATE BANK OF INDIA Elliott Wave Technical Outlook

FUNCTION: Bullish Trend

MODE: Impulsive

STRUCTURE: Navy Blue Wave 5

POSITION: Gray Wave 5

DIRECTION NEXT HIGHER DEGREES: Navy Blue Wave 5 (active)

DETAILS: Navy Blue Wave 4 appears complete, with Navy Blue Wave 5 currently unfolding.

Weekly Market Overview

On the weekly timeframe, State Bank of India (SBI) displays a bullish Elliott Wave pattern, indicating the development of Navy Blue Wave 5. This wave is part of the larger Gray Wave 5 structure, suggesting that SBI is possibly in the final stage of an extended uptrend. Following the end of Navy Blue Wave 4, the emergence of Wave 5 marks a continuation of bullish sentiment.

Current Price Action

Technical indicators show that Navy Blue Wave 4 has completed, paving the way for Navy Blue Wave 5. Typically, this phase represents the last upward push within an Elliott Wave cycle. The impulsive nature of this wave hints at sustained bullish momentum. Traders might find viable short- to medium-term buying opportunities as this final upward leg progresses. Nevertheless, its terminal positioning means the trend could be approaching exhaustion, often preceding a notable correction or reversal.

Strategic Implications

With the start of Navy Blue Wave 5 confirmed, SBI’s upward trend may be in its final phase. As this wave structure matures, investors should be on the lookout for early reversal signals. The transition from Wave 4 to Wave 5 indicates a late-cycle trend continuation, but waning momentum or divergence could signal an imminent shift. Long-term investors can use this weekly view to reduce short-term noise and focus on broader trend dynamics.

Though the outlook remains bullish, recognizing signs of weakening momentum is crucial. Close attention to price action will help traders identify peak signals within this Elliott Wave sequence. This structured analysis offers a dependable guide for positioning in SBI while remaining alert to emerging risks.

Technical Analyst: Malik Awais

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