Bullish reversal from the blue box support signals the next impulsive rally phase
Dixon Technologies (India) Ltd has delivered a technically clean reaction from a major Elliott Wave support region. The weekly structure now suggests the corrective phase has likely ended and the next impulsive advance has begun. Based on the chart structure, we are considering red wave IV completed inside the high-probability support zone between the 50% and 61.8% Fibonacci retracement of wave III — represented by the blue box.
This zone historically acts as an area where institutions accumulate positions within a strong trend. Price respected this area precisely and turned higher, indicating buyers have regained control.
Elliott Wave structure and current market position
The stock previously formed a strong impulsive advance into wave III, followed by a multi-month corrective decline. That decline unfolded in a corrective sequence labeled ((A))-((B))-((C)), ultimately terminating inside the blue box support. The reaction from this region is important because it confirms trend continuation rather than trend reversal. In Elliott Wave theory, once wave IV ends within the ideal retracement range, the market typically transitions into wave V — the final impulsive leg of the higher-degree trend. Price has now started moving higher, suggesting the early stages of wave V are already underway.
Upside targets for Wave V
Using Fibonacci extension projections:
(1.236 external retracement of wave IV — roughly 80% upside from recent levels).
- Extended target: 24,800 region.
The path higher is not expected to be straight. Short-term pullbacks and consolidations should occur along the way, forming smaller degree wave ((1)) and ((2)) sequences inside the larger wave V advance as shown on the chart.
However, the bullish outlook remains valid as long as price stays above the blue box support area. A sustained break below that zone would force a reassessment of the structure.
Summary
Dixon Technologies maintains a strong bullish outlook after completing its Wave IV correction, which has refreshed momentum and likely marked the beginning of Wave V. The preferred approach is to trade with the trend rather than against it. As long as the support zone remains intact, the stock is positioned for a sustained advance toward 21,500 and possibly 24,800 in the coming cycle.
Source: https://www.fxstreet.com/news/dixon-technologies-elliott-wave-forecast-wave-v-rally-targeting-21-500-202602161337
