DLF: Neo wave Diametric and 5th failure terminal

Neo wave is the advance version of Elliott wave, the founder of this wave Glenn Neely has come out with additional patterns which were not in the major works of R. N Elliott.

The contracting diametric and the 5th failure terminal pattern is found in DLF which is shown below. In a diametric formation there are two types one is contracting (bow and tie) and expanding. In this case we witness contracting formation which has seven legs (a-b-c-d-e-f-g). In the 5th failure terminal the third wave is the longest and the 5th wave fails to move above wave three.

From the mid of 2013 DLF was forming a diametric formation and it completed wave g near 180 levels. Prices completed wave a of wave (a) at 180 levels. It then formed wave b of wave (a) near 140 levels, after that it rallied till 230 levels in the form of wave c of wave (a). Wave (b) was seems to be a complex correction and ended at 100 levels. Wave (c) was a 5th failure terminal and was completed at 165 levels. Currently it is moving lower in the form of corrective pattern. The current downfall can extend till 110-100 levels in near term which can be termed as (x).

In short expect DLF to move down further and test its previous low placed at 110-100 levels in coming months or so.

DLF Daily chart


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