Falling Trendline Breakout Setup on a Strong PSU Power Financier ⚡📈

The weekly chart of Power Finance Corporation Limited is showing an interesting trendline breakout setup after a prolonged correction phase, suggesting the possibility of a fresh bullish cycle supported by both technical and fundamental strength. 1. Elliott Wave Structure After completing a strong impulsive rally earlier, the stock entered a Wave 2 corrective phase, forming a broad consolidation and lower highs under a falling trendline. The recent price action indicates a potential completion of Wave 2, and the current breakout attempt above the descending resistance could mark the beginning of Wave 3, which is typically the strongest wave in the Elliott cycle. If this structure holds, the stock may start a new impulsive upward move. 2. MACD Momentum Shift During the recent correction, MACD momentum gradually weakened on the downside, while price started forming higher lows near the support zone. This type of bullish momentum shift often signals that selling pressure is fading and buyers are beginning to regain control. 3. AVWAP Support Zone The price has repeatedly taken support around a strong horizontal level near the institutional accumulation zone, where Anchored VWAP (AVWAP) from the prior major swing aligns with the base formation. This zone acted as a strong demand area, where buyers consistently stepped in to defend the price. 4. Structural Breakout The chart clearly shows a descending trendline resistance connecting multiple swing highs. Price is now testing this resistance, and a sustained breakout above this level could trigger trend reversal momentum, attracting positional traders and institutions. 5. Strong Fundamental Backing The technical setup becomes more compelling when supported by strong fundamentals: Consistent profit growth driven by India's power infrastructure expansion Strong government backing as a PSU lender Healthy dividend yield Robust loan book growth in renewable and power sector projects