Multi-Confluence Reversal Setup Emerging in a Power Sector Leader ⚡📈

The weekly chart of REC Limited is showing a high-probability reversal structure, where multiple technical signals are aligning near a strong institutional support zone. 1. Elliott Wave Corrective Completion After a strong impulsive rally earlier, the stock entered a prolonged Wave 2 corrective phase, forming a sequence of lower highs under a descending trendline. Price is now approaching the final stage of the corrective structure, suggesting the potential completion of Wave 2. If this interpretation plays out, the next move could be the start of Wave 3, which historically tends to be the strongest and fastest wave in the Elliott Wave cycle. 2. MACD Momentum Improvement While the price has been drifting sideways to lower, MACD momentum has been stabilizing, indicating that selling pressure is gradually weakening. Such positive momentum divergence often appears near major bottoms, signaling that accumulation may be taking place beneath the surface. 3. AVWAP and Structural Support Alignment A strong horizontal demand zone around the prior breakout area has been repeatedly defended by buyers. The Anchored VWAP (AVWAP) from the previous major swing aligns closely with this support region, reinforcing it as an institutional accumulation zone where large participants often step in. 4. Fibonacci Retracement Confluence The correction has retraced close to the 0.236–0.382 Fibonacci support cluster of the previous impulsive rally. Such shallow retracements often indicate underlying strength, where price consolidates before resuming the primary trend. 5. Strong Fundamental Foundation The technical setup becomes more compelling when supported by solid fundamentals: Consistent loan book growth driven by power infrastructure financing Strong return ratios and stable earnings visibility Significant role in financing renewable and power sector projects Government-backed institution providing structural stability