Why Hamilton Lane's Correction Isn't Over Yet

Hamilton Lane Inc. (NASDAQ:HLNE) is currently in Phase 11 of its 18-phase Adhishthana cycle and is traversing through the descent leg of its Adhishthana Himalayan Formation. While the stock has already corrected from its highs, the Adhishthana framework suggests there may still be some downside left before stability returns.

Hamilton Lane's Himalayan Formation

Under the Adhishthana Principles, stocks typically form a Cakra structure between Phases 4 and 8, a channel-like formation that usually carries bullish implications. A clean breakout in Phase 9 kicks off the Himalayan Formation, which often brings a strong, multi-leg rally.

This Himalayan Formation has three distinct legs:

• Ascent: occurs in Phase 9 and early Phase 10,
  
• Peak: forms midway through Phase 10,
  
• Descent: unfolds in Phase 11 as the stock retraces from its highs.

Hamilton Lane has followed this path almost perfectly. The stock entered its Phase 4 in 2020, traded within its Cakra until 2023, and then broke out decisively in Phase 9, starting its ascent leg. The stock rallied by nearly 30% in Phase 9 and then surged another 88% in Phase 10, peaking at around $203.72.

Since then, true to the Adhishthana framework, the stock has entered its descent leg, steadily retracing earlier gains, a natural rhythm within the cycle that underscores the precision of the Adhishthana Principles in mapping market behavior.

Quoting from my book, Adhishthana: The Principles That Govern Wealth, Time & Tragedy:

"If C10 forms a proper summit, C11 will complete the descent, bringing the underlying back to its original state generally by the 50th interval."

Given this, the correction for Hamilton Lane may not yet be over. The stock initially broke out of its Cakra near $95, and with prices still hovering around $125, there's room for further cooling before equilibrium returns.

Investor Outlook

With the descent leg still unfolding, patience is key. The stock’s Adhishthana cycle suggests some more correction might be in play before a new base forms. While it's not yet time to re-enter aggressively, Phase 12 onward could offer new opportunities once the stock stabilizes near its point of origin.

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