AUBANK completes a rare expanding triangle in wave (4), suggesting the next impulsive rally could target the 1138–1322 region as the broader bullish cycle continues.
AU Small Finance Bank Ltd. (AUBANK) appears to have completed its cycle degree correction in wave II at 477.75. The stock then turned higher and started a new bullish cycle in wave III. This move suggests that the market has entered a fresh impulsive phase with strong long-term potential. From the 477.75 low, the stock formed an initial three-wave advance. After that rally, price entered a corrective phase labeled blue wave (4). This pullback unfolded as an expanding triangle, which is a rare Elliott Wave pattern. Such triangles usually appear before a strong continuation of the trend.
Expanding Triangle Indicates Trend Continuation
The triangle pattern appears to have completed near 895.05. This completion suggests the consolidation phase has likely ended. As a result, AUBANK may now begin the next impulsive leg higher. Expanding triangles often build pressure before a breakout. In this case, the structure supports the view that the next move should occur in wave 5. This wave should complete black wave ((1)) of the larger bullish sequence.
Using Fibonacci extensions, the next upside target comes near 1138.75. This level represents the 0.618 extension of wave (3). It acts as the minimum expected target for the current bullish move. However, Elliott Wave rules also define an upper boundary. Since wave (3) is already shorter than wave (1), wave 5 should remain below 1322.35. A move above this level would violate the rule that the third wave cannot be the shortest.
Pullback Could Offer Buying Opportunity
After the rally reaches the 1138.75–1322.35 region, the market may enter a correction in wave ((2)). This pullback could unfold in 3, 7, or 11 swings, which are common corrective structures. As long as price stays above 477.75, the long-term bullish outlook remains valid. The current structure suggests that AUBANK may continue higher in the near term. Traders should watch pullbacks for potential buying opportunities within the broader uptrend.