Momentum Exhaustion at the Top: Corrective Signals Emerging in a Fundamentally Strong IT Stock

Elliott Wave Structure: The rally from the October lows shows a clean 5-wave impulsive structure, with price peaking in the 6,600–6,700 zone. Post this peak, the stock has entered a corrective phase (ABC). The recent sharp breakdown suggests Wave A is already in progress, and the structure hints at a deeper retracement before the correction matures. MACD Divergence: At recent higher highs, momentum failed to expand proportionately, forming a bearish MACD divergence. This non-confirmation signaled weakening buying strength, which has now translated into strong selling pressure. AVWAP Analysis: Price has decisively broken below the AVWAP, which previously acted as a dynamic support during the uptrend. This breakdown shifts AVWAP into a resistance zone, indicating that institutional support has paused in the near term. Moving Average Structure: The stock has slipped below short-term averages and is now gravitating toward the longer-term moving average zone, highlighted near the lower region. This behavior aligns more with a trend correction rather than a healthy pullback. Fundamental Strength (Long-Term Context): Fundamentally, the company remains high-quality, supported by strong ROCE, consistent earnings growth, and robust digital transformation demand. However, markets often correct even the best businesses after sharp rallies, and current price action reflects valuation digestion rather than fundamental deterioration.