Canara Bank: Price targets using Elliott wave!

Canara Bank: Price targets using Elliott wave!

We published about Canara Bank in March 2024 and predicted a possibility of good returns in the coming months in our Monthly Research report. Check out the research we had published on 19th March.

Below is the chart which shows a detailed analysis of Canara Bank which helped to derive targets of 580-600 levels using Elliott Wave technique and Time cycle. We recommended this stock when it was trading near 545-550 levels and was successfully able to catch the up move.

Canara Bank Weekly Chart (Anticipated as on 19th March 2024)

Wave analysis as on 19th March 2024

Canara Bank comes under public sector. PSU sector continued to shine in February month also. At the start of March month Canara Bank made fresh record high at 606.3. In the month of February stock has witnessed rise of more than 26%.

Currently we are witnessing profit booking in this stock. But it will provide good opportunity to create fresh long positions as medium term trend is bullish.

Elliott Wave analysis: As shown on the weekly chart, prices are moving higher in the form of Impulsive Pattern.? Wave 2 of Primary degree is completed on the downside near 171.7 levels and currently wave 3 is ongoing. The stock has shown an exponential rise in the form of wave 3 from the lows of 171.7. As shown in the weekly chart the prices have shown an excellent rise and are moving precisely within the multi-year channel.

Indicator Analysis: A good moving average tends to provide a good support on dips during rallies and resist price on pullbacks during downtrends. We have identified the 40-week EMA which has successfully supported rallies in the past and dips towards this average have acted as a great buying opportunity as major lows have formed at this average. If similar such opportunity comes again, one can make the most of it. Additionally, KST is suggesting that good momentum is likely to continue in coming weeks.

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In nutshell, we expect Canara Bank to provide greater gains in future. In a nutshell, trend for Canara Bank is positive and we can expect the stock to eventually move towards 580 followed by 600 levels.

Canara Bank Daily Chart Happened as on 3rd April 2024

Happened: Post recommending this stock, prices moved as expected, stock showed a good rally and achieved our target 1 of 580 levels. In today’s session prices made high of 595.5 which is near our target 2 of 600 levels. This up move of more than 10% we have been able to capture with the help of Elliott wave, along with price indicators.

For now, trend remains positive for this stock. One can use buy on dips approach to ride the trend as long as 584 remains intact on the downside.