ZEEL finishes a multi-year Elliott Wave correction and begins a fresh impulsive rally, signalling strong upside potential ahead.
Zee Entertainment Enterprises Ltd (NSE: ZEEL) appears to be turning the corner after completing a long and complex Elliott Wave correction. According to the weekly chart, ZEEL has finished a multi-year double zigzag corrective structure in wave (II), which bottomed recently. The price action now suggests that a new bullish cycle is unfolding.
The larger structure shows that ZEEL completed a major 5-wave advance into wave (I) around 2018. Since then, the stock has been correcting through a W-X-Y pattern that spanned nearly six years. This correction concluded around ₹89.32, well above the invalidation level of ₹43.79. That level remains crucial to maintain the long-term bullish outlook.
Currently, ZEEL is forming the early stages of a new impulse from the lows. Wave ((1)) of the next bullish leg is underway and could soon be followed by a brief wave ((2)) pullback before the rally resumes. The “Right Side” tag on the chart points up, confirming that the trend has shifted back to the upside. The chart also carries a warning – “We Do Not Recommend Selling” – which reinforces the bullish bias.
If this count plays out, ZEEL may be poised for significant gains in the months and years ahead. A completed wave ((2)) would lead to wave ((3)), which is typically the strongest part of an impulsive structure.
Conclusion:
In conclusion, ZEEL likely ended its wave (II) correction and has started a fresh bullish sequence. The technical structure favors higher prices ahead. Pullbacks within wave ((2)) may offer good entry points for investors. The stock must stay above ₹43.79 to maintain this outlook.
Source: https://elliottwave-forecast.com/stock-market/963920/