• ABCD patterns are quite easy to identify on charts( any time frame)
  • It consist of 3 legs, and looks like zig-zag patterns.
  • AB=CD patterns are made up of equal price legs( price wise and time wise)
  • In Ideal ABCD pattern, BC leg usually retraces .618 or .786 of AB leg.
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  • On Cipla weekly chart, a straight sharp fall i.e a implusive move from 746.80 to 618.75 were seen. This fall was completed in 4 weeks.
  • The said fall was then followed by a rally which retraces .618 of it and this retarcement ratio is usually treated as ideal ratio for abcd pattern , thus a probabilty of bullish abcd pattern is identified of which two legs were already in place.
  • A bearish harami was seen near .618 retracement, thus further supporting the probabilty.
  • According to this probability cd leg is expected to be of 128.05  points or 1.618 projection of bc leg and to be completed in 4 weeks 
  • As expected, cipla weekly charts unfolded the bullish abcd pattern.
  • Currently we are in the 4th week of cd leg and the pattern is near its completion point i.e 573- 565
  • Lets looks at identification and near completion charts:

Weekly Chart as on 22-05-2015 

Weekly chart as  on today ( ABCD Pattern near completion point)
Since this is a bullish abcd pattern , probability of a bounce from the pattern completion point cannot be ruled out.
573-565 can be treated as Potential reversal area of this bullish abcd pattern.

Any close below PRZ area would negate the said probability.

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Daily Chart as on 22-05-15
Daily Chart as on today