NSE:GOKULAGRO seem to have started major wave 3 as per this monthly chart. Wave 3 has already surpassed the wave 1 high.
Rarely do we see such clean wave structure. You can see the wave 1 counts, including internal wave counts, very clearly. Stock is trading at 235 right now and as per wave equality principle, conservative target for wave 3 is around 2000. Remember that wave 3 is typically the longest and fastest wave – never the shortest.
Wave 1 took nearly 2.5 years to complete. It’s difficult to estimate time but if I had to, I would say in this case 3 years would be a reasonable timeframe for wave 3 to complete or reach the equality target around 2000.
If we extrapolate things from here for wave 4 and 5, assuming wave 3 would be equal to wave 1 and worst case scenario for wave 4, i.e. 78.6% retracement from wave 3 high then as per equality, wave 5 should still be above 10K. Sounds ridiculous, right? Well, it does, till it happens 😀
Another thing worth noting is that volume are very supportive of this move so far.
Having said all that, remember that technical analysis is always probability based and does not guarantee results so you would always have to manage the risk.
Disclaimer: Purpose of this post is to educate on technical analysis methodologies and not giving trading/investing advice.
