After steep correction - reversing with a leading diagonal

Exide earlier formed a nice rounding bottom and moved to 600 levels which completed its up move and then completed the deep corrective move with a zigzag pattern at around 320, re-testing the neck of the rounded bottom / cup.

Currently it formed a leading diagonal (wave 1 or wave A) which indicates a good rally is in the offing. CMP is 388. Even wave 2 (B) also is done at 0.5 levels. This weeks candle closed above the hammer candle confirming the reversal and indicating that the rally is to continue.

Details below:

Though the 600 levels appear to be wave 3 and the correction expected was of wave 4. But such steep a correction is not expected in wave 4, especially after wave 2 corrected to 0.618 levels.

So I see 2 possibilities -
1. The 600 was wave 1 on a primary level and this current correction that corrected to almost 0.5 levels, could be wave 2. In that case we will be getting the next wave 3 which will take it to ATH and beyond.
2. The current correction is wave 4.
(a) - The correction of a zigzag got completed at around 320 levels, and its wave 5 in the making - in which case the min target is around 500 - even with a 5th wave failure.
(b) - The correction might continue to form a flat correction in which case too it has to touch 500 levels (0.618 of the zigzag for the B wave of flat).


So the tentative minimum levels expected is 500. And further clarity will emerge with its progress.

Disclaimer:
1. Not a trade recommendation but an analysis for learning.
2. I do not own this stock in my portfolio as of now.