Will Edelweiss Go Up Or Crash & Current Market Cycle Stage Of The Stock !

You are currently viewing Will Edelweiss Go Up Or Crash & Current Market Cycle Stage Of The Stock !

Analyzing the monthly candlestick chart for “EDELWEISS FIN SERV” listed on NSE, we can interpret the following stages according to Wyckoff’s market cycle theory:

2008 to 2010 – The chart begins with what appears to be a Markdown phase, with prices declining significantly, indicated by a series of red (bearish) candles, demonstrating a period where supply exceeds demand.

 

2010 to 2013 – After the decline, the price enters an Accumulation phase characterized by a range-bound movement, suggesting that the market is balancing out and smart money may be acquiring shares in preparation for a future markup.

 

2014 to Mid-2017 – This period shows an evident Markup phase, where the price increases substantially, reflecting higher demand than supply. The green (bullish) candles show buyers are willing to purchase at higher prices, and the trend is upwards.

 

Mid-2017 to 2020 – There is a sharp rise followed by a peak and a subsequent Distribution phase, where the price tops out and starts moving sideways with some volatility. This suggests that large operators may be selling their positions and the market is saturated with supply.

 

2020 to Early 2022 – A significant downward trend indicates another Markdown phase, where the price falls steeply, shown by long red candles. This phase is marked by a persistent surplus of supply over demand.

 

Early 2022 to Present – The most recent candles indicate a potential Accumulation phase again, as the price stabilizes and begins to rise. The increase in volume during the last few green candles may suggest renewed interest and potential buying from informed traders or investors, hinting at the beginning of another Markup phase.

 

Regarding the latest five candles (presumably monthly candles):

  • The presence of increasing volumes with rising prices in the green candles is a positive sign.
  • The wicks on the top of the candles show some selling pressure, but the buyers are still in control since the closing prices are near the highs.
  • The last candle has a long wick at the top, which could indicate that while buyers pushed the price up during the month, there was significant selling pressure that prevented the candle from closing at its peak.

In conclusion, based on this analysis, the current market cycle stage for EDELWEISS FIN SERV appears to be in an Accumulation phase, with a potential transition into a Markup phase if the buying pressure continues.

This could lead to an upward trend in the near term, assuming the pattern persists and the broader market conditions are favorable. However, it’s important to monitor for any signs of reversal or continued selling pressure that could indicate a change in market sentiment.