Bhansali Engineering Polymers (NSE:BEPL) has given a breakout in monthly chart with decent volumes. This was caught by my breakout scanner. A quick look revealed that this breakout is supported by Elliott Wave counts.
Counts marked in green are the primary wave counts in this case. Numerical counts in blue are the internal wave counts and counts in roman numbers are internal wave counts of blue ones.
As per the primary wave counts, we seem to be in wave 3 (minor) or larger wave 3 (primary). Going by wave equality principle, minimum target for wave 3 (primary) should be around 550 which is more than 3.5X from current price around 157.
On the downside, if we close below the breakout zone around 128 and further break the low of primary wave 2, which is at 58 then these bullish counts are invalidated and the breakout would turn out to be a fake one.
Disclaimer: Purpose of this post is to educate on technical analysis methodologies and not giving trading/investing advice.
