Monthly Elliott Wave analysis shows Wave I nearing completion, key Fibonacci targets ahead, and a corrective pullback before the next major rally.
United Spirits Limited (NSE: UNITDSPR) continues to trade in a strong long-term bullish Elliott Wave structure on the monthly chart. The broader trend remains positive despite short-term price swings. Since the 2020–2021 period, price action has shifted clearly from correction to impulse. This shift suggests the market has entered a new bullish cycle rather than forming a long-term top.
Impulse Structure and Fibonacci Targets:
From the Wave IV low, price moved higher in a clear five-wave structure. Waves (1) and (2) set the direction of the trend. Wave (3) followed with strong upside momentum, which is typical in Elliott Wave patterns. Wave (4) is now unfolding as a sideways structure, most likely a contracting triangle. Once this consolidation completes, price is expected to turn higher again in the final Wave (5), targeting key Fibonacci projection levels.
Fibonacci extensions from the earlier impulse define the upside targets. The zone near ₹1,798 represents the 1.236 extension and could acts as a conservative fifth-wave target. A further extension toward ₹1,962 aligns with the 1.618 Fibonacci level. Price may pause or react near these zones as Wave I approaches completion.
Once Wave I finishes, the market should enter a corrective Wave II. Fibonacci retracement analysis points to support near the 0.382 retracement level around ₹1,208. This area also matches prior price structure, which increases the chance of a technical reaction. Such a pullback would remain corrective in nature and would not signal a trend reversal.
The chart clearly states that selling is not recommended. The Right Side Tag remains active and favors the bullish direction. The long-term invalidation level stands much lower near ₹84. As long as price stays above this level, the larger Elliott Wave structure remains valid.
Conclusion:
In conclusion, United Spirits Limited continues to hold a bullish Elliott Wave setup supported by clear Fibonacci relationships. Short-term corrections may appear, but they form part of a broader upward cycle. The overall structure continues to favor long-term bullish opportunities rather than weakness.