Structural Retest in Progress: Strong Business, Weak Hands Shaking Out

🔹 Elliott Wave Structure The rally from the November lows to the December highs forms a clear 5-wave impulsive advance. Post-peak, price is correcting in a classic ABC corrective structure: Wave A: Fast sell-off from the top, breaking short-term structure Wave B: Relief rally toward ₹6,000, failing to make a new high Wave C: Current leg down, approaching the origin of the prior impulse The highlighted support aligns with Wave 4 of a higher degree, a common area where corrections tend to terminate in strong trends. 🔹 MACD Insight MACD has remained in negative territory during the decline, but downside momentum is not expanding. Recent price lows are not being matched with proportionally lower momentum readings, indicating bearish momentum loss. This opens the door for a bullish divergence if price stabilizes near the marked support. 🔹 AVWAP Perspective The anchored VWAP from the November breakout converges closely with the ₹5,250–5,300 zone. Price returning to AVWAP after a strong trend often represents a mean reversion rather than trend breakdown. This level is critical: acceptance below it would imply structural damage, while holding above favors accumulation.