Technical analysis of Asian Paints using Elliott Wave theory [Video]

Asian Paints is showing potential for a bullish trend based on Elliott Wave technical analysis. The larger degree trend, classified as Higher – Intermediate Degree in Orange, suggests that Intermediate Wave (5) is likely moving higher. The structure of the current wave pattern indicates a potential impulse, with Minor Waves 1 and 2 already completed, and Minor Wave 3 currently in progress. Minute Wave ((ii)) Navy of Minor Wave 3 is believed to have completed around the 3000 level, with Minute Wave ((iii)) expected to begin soon. However, if Intermediate Wave (5) ended around 3570, a larger correction could be unfolding. The invalidation point for this scenario is set at 2840.

On the daily chart for ASIAN PAINTS, the stock is seen moving higher within Intermediate Wave (5) Orange after a consolidation period that ended Intermediate Wave (4) around 2670. A triangle formation was evident between October 2021 and May 2024, suggesting a potential impulse wave pattern. With Minor Waves 1 and 2 Grey already completed, Minor Wave 3 is currently extending higher. As long as prices remain above 2840, the termination level of Minute Wave ((ii)) of 3, the expectation is for continued upside towards the 3400 level.

The 4-hour chart for ASIAN PAINTS provides a closer look at the sub-waves within Intermediate Wave (5) Orange. After the triangle formation terminated around 2670, Minor Waves 1 and 2 were identified around the 2890 and 2840 levels, respectively. Minor Wave 3 is now unfolding, with Minute Wave ((i)) around 3400 and Minute Wave ((ii)) around 2980. The potential for Minute Wave ((iii)) to begin soon could further support the bullish case for the stock.

In conclusion, ASIAN PAINTS appears to be on a path towards higher prices, specifically within Minute Wave ((iii)) Navy of Minor Wave 3 Grey, as part of the overall Intermediate Wave (5) Orange pattern. With a key support level at 2840, investors and traders should monitor price action closely to confirm the bullish outlook. The Elliott Wave technical analysis provides insights into the potential wave patterns and trend direction for ASIAN PAINTS, offering a framework for traders to make informed decisions in the market.