Is this the End of Adani Enterprises?

The Price of Adani Enterprises Limited has fallen down by 39% since the bad news of US indictment has came to surface on 19th November 2024. And since then all the rating agencies has changed their rating outlook for this stock to Negative.

In here, I am not going to dive into the legality of the bribe case or the political aspect of it.

I am a #priceaction analyst and hence I want to know what the price in the chart is reveling to us. Is this Company going to close? or the prices are going to go down further? or this is the right time to invest in this stock?

So, to get the answer of all these questions, I have done a #priceaction analysis on the #adanient Candlestick Chart.

In #adanient after a Big Rally the price has created a Bullish Symmetrical Triangle in the Monthly Time Frame Chart, where the Symmetrical Triangles point A, B and C are clearly visible, and the point "D" is in making.

Also the price is moving Sideways, hence Corrective Patterns are getting formed in this chart. As the formation of these Corrective Patterns happening after a rally, hence it should take the price up in the near future.

Conclusion: -

With this simple #priceaction analysis, we come to the conclusion that price will first go down a bit to complete the point "D" of the Symmetrical Triangle and then once the Symmetrical Triangle is completed the price can recover and go up to the All Time High again.

In price action trading, we look for Patterns in the chart and based on these patterns we decide whether to go long or short in the stock.

When a pattern is identified and drawn properly, it generally follows its bias. The bias of a Symmetrical Triangle which formed after a Rally is Bullish and price should go up after the pattern completes.

Sideways movement in a Rally are often Re-Accumulations, where retailers Fear to go Long and Institutions take the advantage of their Fear to Buy the Stock at cheap prices. As the Institutions in Re-Accumulation stage buys in tranches, hence price starts moving sideways and that creates all kind of patterns. We as a price action analyst search for these patterns to understand the Institutional behavior and trade accordingly.

Hence, my expectation is that after the completion of the Symmetrical Triangle Pattern, the price of #Adanient will go up. And as per Box Theory the Target could be as high as 7,300/-. YES, that is approx 3.5 times the Current Market Price.

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