Development Bank Elliott Wave: Bullish Wave 2 Setup & Bearish Wave 4 Patterns

Development Bank Elliott Wave: High-Risk Bullish Wave 2 and Bearish Wave 4 Patterns

Signal: neutral

Current Elliott Wave count: Wave 2

• Preferred levels:
• Support: 5559
• Stop Loss: 5294.71
• Invalidation: 5294.71

In Development Bank, we're witnessing an expanding leading diagonal formation, which has been followed by a sharp 2nd wave correction. This correction appears to be nearly complete, having retraced to the 78.6% area. According to Elliott Wave analysis, for the expanding leading diagonal to remain valid, it's crucial that the stock doesn't breach the 5294.71 level, as a break below this would invalidate the pattern.

Based on an alternative count for the Development Bank index, we're labeling the current formation as a long and complex running triangle. This pattern appears to be nearing its conclusion, and it's possible that it may have already ended or could be heading towards the 78.6% Fibonacci retracement area. However, if the index breaks below 5164.85, this count will be invalidated. To confirm an upside movement, I've drawn a parallel channel and trendline in red, which the index needs to clearly break out of to support a bullish outlook.