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Elliott Wave Analysis by EWF

Discussion in 'FOREX Forums' started by Elliottwave-Forecast.com, Mar 7, 2017.

  1. Elliottwave-Forecast.com

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    In this blog, we are going to take a look at the Elliottwave chart of EURCAD. Based on the daily chart shown below, the pair is doing a correction in wave IV right now. The correction is unfolding as a double three and has an incomplete sequence. It has not reached the 100% -161.8% extension at 1.3531 - 1.4368 area. We are showing this area with a blue box. The blue box is the area where we expect the correction to end and buyers to appear for an extension higher or 3 waves bounce at least.

    EURCAD Incomplete Sequence from March 20,2018
    [​IMG]

    The daily chart shows that wave w of IV ended at 1.4795 low. The bounce in wave x ended at 1.5735 high. Currently, wave y is in progress. Wave ((W)) of y ended at 1.4575 low and wave ((X)) ended at 1.4995 high. Wave ((Y)) is unfolding as a zig-zag, where wave (A) ended at 1.4417 low and wave (B) ended at 1.4772 high. The pair can still extend lower as wave (C) remains in progress and has the scope to reach the blue box area. However, it needs to break below wave (A) low to confirm it.

    EURCAD 2.3.2020 1 Hour NY Midday Elliott Wave Update
    [​IMG]

    The chart from 2.3.2020 1 hour NY Midday update showed that wave 2 of (C) is unfolding as a zig-zag. Wave ((a)) ended at 1.4614 high and wave ((b)) ended at 1.4474 low. The 123.6% - 161.8% extension of wave ((a)) - ((b)) where wave ((c)) can end is at 1.4707-1.4738 area. The pair has already reached this blue box area. From there, we expected a 3 waves pullback at least or even an extension lower.

    EURCAD 2.11.2020 1 Hour NY Elliott Wave Update
    [​IMG]

    The chart from 2.11.2020 1 hour NY update showed that the pair has ended wave 2 at 1.4722 high, which is in the blue box area. From there, it has reacted lower, allowing members who sold at that area a risk free position. As long as the pivot at 1.4722 high stays intact, expect the bounce in 3,7,11 swings to fail. The pair then can continue to extend lower until it reaches the blue box area in the daily chart.
     
  2. Elliottwave-Forecast.com

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    Short term Elliott wave view in AUDUSD suggests the pair ended the cycle from January 1, 2020 high in wave (1) at 0.6658 low. Down from January 1, wave 1 ended at 0.6845 low and wave 2 ended at 0.6934 high. The pair continues to the downside and ended wave 3 at 0.6675 low and the bounce in wave 4 ended at 0.6774 high. Wave ((i)) of 5 ended at 0.6708 low. The bounce in wave ((ii)) ended at 0.6724 high. From there, pair resumed lower in wave ((iii)) towards 0.6668 low. Wave ((iv)) bounce ended at 0.6686 high. The final wave ((v)) of 5 ended at 0.6658 low.

    The pair is now correcting the cycle from January 1 in a larger 3 waves bounce within wave (2). Wave ((i)) of A ended at 0.6737 high with internal subdivision as a leading diagonal. Wave (i) of ((i)) ended at 0.6707 high and the pullback in wave (ii) ended at 0.6668 low. From there, it bounced higher in wave (iii) and ended at 0.6719 high. Wave (iv) then ended at 0.6696 low. The pair then moved higher in wave (v) which ended at 0.6737 high. From there, the pair is doing a pullback in wave ((ii)) and it has ended at 0.6704. As far as the pivot at 0.6658 low stays intact, expect dip to find support in 3,7,11 swing for further upside.

    AUDUSD 1 Hour Elliott Wave Chart
    [​IMG]
     
  3. Elliottwave-Forecast.com

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    $EURGBP FX Pair Longer Term Cycles and Elliott Wave

    Firstly as seen on the monthly chart below there is data back to January 1975 in the pair. The EUR part being derived from the German Deutsche Mark up until the point EURUSD currency existed.

    Secondly as seen on the monthly chart below I will describe how I think the pair has risen thus far & what can be seen in the future. You can see the bounce from the February 1981 lows appears to be 3 swings to the November 1995 highs. There are usually a few counts that can be valid. This move appears to be a double three. I prefer to use momentum indicators to show when a cycle ends from any point in time. Whenever a proposed wave two, B, X or wave four of any degree has been taken by the momentum indicator it is likely it has ended that cycle whether it is up or down.

    The analysis continues below the monthly chart.

    [​IMG]

    From the November 1995 highs the pair declined hard enough to the May 2000 lows to suggest it was correcting the cycle from the February 1981 lows. The pair has not made another low since then. From the May 2000 lows it made another high in December 2008. From there it declined until July 2015 hard enough to suggest it was correcting the cycle up from the February 1981 low. That suggests the move from the February 1981 low to the December 2008 high was of three swings. The aforementioned December 2008 to July 2015 lows move appears to have been another typical three swings.

    The analysis and Elliott Wave part of this continues below the weekly chart.



    [​IMG]

    Thirdly and in conclusion. From the July 2015 lows it made a relatively clean five waves impulse higher to the August 2017 highs. The pullback from there thus far is in three waves however it has another high in August 2019. The momentum indicators suggest this pullback is correcting the cycle from the July 2015 lows as a flat before it turns back higher. This is a wave ((C)) which is an impulse. Unfortunately due to the nature of an impulse wave they can extend in any degree. This makes the area expected to reach difficult to forecast. As of right now I would assume it can reach the .7850-.7500 area before the pair turns back higher above the August 2017 highs firstly then later the December 2008 highs.
     
  4. Elliottwave-Forecast.com

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    Short term Elliott wave view in Bank of America (ticker: BAC) suggests the rally from January 27, 2020 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from January 27 low, wave ((i)) ended at 33.49 and pullback in wave ((ii)) ended at 32.52. The stock has resumed higher in wave ((iii)) which ended at 35.45. Internal of wave ((iii)) subdivided in 5 waves impulse in lesser degree. Up from 32.52, wave (i) ended at 33.55, and wave (ii) pullback ended at 32.65. Stock then resumed higher in wave (iii) towards at 35.01. Wave (iv) pullback ended at 34.24 and the final leg wave (v) of ((iii)) ended at 35.45.

    Wave ((iv)) pullback is in progress to correct cycle from January 30 low before the stock resumes higher in wave ((v)). The pullback is unfolding as a zigzag structure where wave (a) ended at 34.78 and wave (b) ended at 34.97. Potential area to end wave (c) of ((iv)) is 100% - 123.6% Fibonacci extension from February 12 high which comes at 33.9 - 34.3. From this area, BAC can then extend higher or at least bounce in 3 waves.

    BAC 1 Hour Elliott Wave Chart
    [​IMG]
     
  5. Elliottwave-Forecast.com

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    Singapore Dollar SGD tumbled last week after Monetary Authority of Singapore (MAS) suggests that Singapore Dollar has room to depreciate. The statement came after the coronavirus infection spread to the territory and the central bank predicts it will hit growth. This comes after the economy shows signs of recovering from last year's weakest growth in a decade. Unlike other central banks, MAS manages policy through exchange rate bands. This band is not disclosed and MAS will let SGD to rise or fall within the closely-guarded bands.

    In their statement, MAS indicated there's sufficient room within the policy band to accomodate an easing in line with the weakening of economic conditions. It dropped as much as 0.9% last week to $1.382 against the U.S Dollar after the announcement. The currency will likely remain under pressure as markets price in easing.

    USD/SGD Daily Elliott Wave Sequence
    [​IMG]

    Daily Elliott Wave chart above shows the pair is close to breaking above Sept 3, 2019 high (1.394). A break above that level will create a bullish sequence from January 26, 2018 low and confirm that the next leg higher within wave III / C to have started. Wave ((1)) rally from January 2, 2020 low (1.344) also looks impulsive and later wave ((2)) pullback should continue to find support in 3, 7, or 11 swing against 1.344 for more upside. We don't like selling the pair and favor further upside as far as pivot at 1.344 low stays intact.

    USD/SGD 1 hour Elliott Wave Outlook
    [​IMG]

    Short term 1 hour chart of USDSGD above suggests pair has scope to extend 1 more leg higher before ending 5 waves up from Jan 3, 2020 low. Wave (4) pullback is currently in progress in 3, 7, or 11 swing before pair resumes higher. As far as pivot at 1.347 low stays intact, expect pair to extend higher 1 more time. If the pair does extend higher in wave (5) and breaks above September 3, 2019 high, then the bullish sequence from January 2018 low will be confirmed.
     
  6. Elliottwave-Forecast.com

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    Short term Elliott wave view in Bitcoin (BTCUSD) suggests the rally from January 24, 2020 low has ended as a 5 waves impulse Elliott Wave structure. Up from January 24 low, wave ((i)) ended at 9570 and pullback in wave ((ii)) ended at 9075. The crypto currency then resumed higher in wave ((iii)) towards 10199.85 and the pullback in wave ((iv)) ended at 9706.94. Wave ((v)) of 1 is proposed complete at 10500.

    Wave 2 pullback is in progress to correct cycle from January 24, 2020 low before the rally resumes. Internal of wave 2 is unfolding as a zigzag Elliott Wave structure where wave ((a)) ended at 10068 and wave ((b)) bounce ended at 10500. The next potential short term support area for wave ((c)) comes at 9759.61 - 9986.57. This is the 100% - 123.6% Fibonacci extension of wave ((a))-((b)). From this area, Bitcoin can end wave 2 and extends higher or bounce in 3 waves at least. If Bitcoin instead extends above 10500 from here, then it suggests wave ((v)) of 1 remain in progress and can see a few more highs before ending wave 1. We don't like selling Bitcoin.

    Bitcoin 1 Hour Elliott Wave Chart
    [​IMG]
     
  7. Elliottwave-Forecast.com

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    Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of BABA. As our members know BABA has recently given us pull back against the 199.12 low. Pull back unfolded as Elliott Wave Zig Zag Pattern. We expected buyers to appear at the Blue Box , calling for rally in 3 waves bounce at least. In the further text we are going to explain the Elliott Wave Pattern and the Forecast.

    Before we take a look at the real market example, let’s explain Elliott Wave Zigzag pattern.

    Elliott Wave Zig Zag Pattern
    Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and ideal retracements.

    At the graphic below, we can see what Elliott Wave Zigzag structure looks like. 5 waves down in A, 3 waves bounce in B and another 5 waves down in C.

    [​IMG]

    BABA 1 Hour Elliott Wave Analysis 2.7.2020
    As we can see on the chart, we are getting 3 waves down in wave ((ii)) black pull back. Pull back is unfolding as (a)(b)(c) Elliott Wave Zig Zag pattern. First leg (a) was a very sharp decline, which is obviously impulsive structure. ( 5 waves are not labeled on this chart but they’re visible on lower time frames) . Then we got 3 wave bounces in wave (b) . And finally, doing last leg down (c), which is still in progress. Pull back looks incomplete at the moment,missing equal legs : 213.87-207.2 area. We expect last push down to take place soon, to complete 5 waves in (c) leg. We don't recommend selling the stock.

    You can learn more about Zig Zag Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.

    [​IMG]

    BABA 1 Hour Elliott Wave Analysis 2.14.2020
    BABA found buyers right at the blue box area :213.87-207.2 area. The pull back wave ((ii)) completed as Elliott Wave Zig Zag at the 212.35 low. We got nice rally from there, however need to see break above 02/05 peak to confirm wave ((iii)) is in progress.

    Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room



    [​IMG]

    Elliott Wave Forecast
     
  8. Elliottwave-Forecast.com

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    Bristol-Myers Squibb (NYSE: BMY) is an American pharmaceutical company which manufactures prescription pharmaceuticals and biologics in several therapeutic areas with particular success in cardiovascular treatments.

    Since 2008, BMY established an impulsive rally taking the stock to new all time highs after it managed to break above 1999 peak which opened a multi-year bullish sequence. The cycle lasted for 8 year before it finally ended in 2016 and started a 3 years correction.

    Based on the Elliott Wave Theory , after five waves takes place, a three waves pullback follows. The stock turned lower and did a Zigzag structure lower until 07.23.2019, as we show in the following chart.

    BMY Weekly Chart
    [​IMG]

    Up from there, BMY started to rally within a new impulsive structure suggesting the end of the correction and the resuming of the main trend which is bullish. Consequently, the stock is expected to remain supported during short term pullbacks against $42.48 and will be aiming for a break above $77.12 which will open a new weekly bullish sequence aiming for a target at equal legs area $103 - $118.
     
  9. Elliottwave-Forecast.com

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    Short term Elliott wave view in EURUSD suggests the cycle from December 31, 2019 high is unfolding as an impulse wave. Down from December 31, wave (1) ended at 1.0991 low and the bounce in wave (2) ended at 1.1097 high. The pair continues to the downside and wave (3) is still in progress. Wave 1 of (3) ended at 1.1034 low. The bounce in wave 2 ended at 1.1066 high. From there, pair resumed lower in wave 3 towards 1.0890 low. Wave 4 bounce ended at 1.0926 high. The final wave 5 of (3) remains in progress with internal subdivision of an impulse.

    Wave ((i)) of 5 ended at 1.0863 low and the bounce in wave ((ii)) ended at 1.0889 high. From there, it extended lower in wave ((iii)) and ended at 1.0826 low. Wave ((iv)) then ended at 1.0861 high. The pair is extending lower in wave ((v)) of 5 right now and can see a few more push lower to end wave (3). After that, a 3 waves bounce in wave (4) can be seen. However, as far as the pivot at 1.1097 high stays intact, expect the bounce in 3,7, or 11 swing to fail and sellers to appear for more downside.

    EURUSD 1 Hour Elliott Wave Chart
    [​IMG]
     
  10. Elliottwave-Forecast.com

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    $SLV Ishares Silver Trust Larger Cycles and Elliott Wave

    Firstly there is data back to when the ETF fund began in 2006 as seen on the weekly chart shown below. The fund made a low in 2008 that has not since been taken out in price. There is no Elliott Wave count on that weekly chart. However you should be able to assume from the October 2008 lows to the April 2011 highs was a larger degree impulse.

    Secondly, the decline from the April 2011 highs down to the December 2015 lows was three swings. Price held above the October 2008 lows. The bounce from the December 2015 lows to the August 2016 high was strong enough to end the cycle from the April 2011 highs. I presume the correction lower completed there.

    The analysis continues below the weekly chart.

    [​IMG]

    Thirdly, the cycle from the April 2011 high appeared to have ended the bounce to the August 2016 high. That bounce appeared to be a diagonal wave one of large degree. This is where the daily chart shown below picks up with the Elliott Wave labeling. This decline appeared to be an Elliott Wave zig zag structure. The decline from the June 14, 2018 high ended on September 11th 2018 just above the lows from December 2015. Next, the bounce from the September 2018 lows was strong. It ended the cycle from the August 2016 highs.

    The analysis concludes below the daily chart. Here is the SLV Daily Chart.

    [​IMG]

    In conclusion, the bounce from the September 11, 2018 lows exhibits all qualities of an impulse. It is incomplete at this point. It should go higher once more above the 9/4/2019 highs. Most ways to get this fitth wave target have already been met. While above the December 2019 lows it can see strength to around the 19.00 area. Afterward it can correct the cycle up from the 9/11/2018 lows.
     
  11. Elliottwave-Forecast.com

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    As US indices were making lower lows in January and February of 2019, PYPL was making higher lows setting up a bullish structure within a larger impulse up against its All Time Low of 30.00 set on 8/24/15. Taking a look at the 4h chart on PYPL, we favour that there is a wave ((3)) of red V in progress while above the wave ((2)) lows of 94.73 set on 10/23/19. From there, blue (1)-(2) is set and blue (3) is in progress. An equal legs extreme area of ((1))-((2)) is at 141.60 to 170.57, with the typical wave ((3)) target area at the upper end of the box. The right side is up and we do not recommend selling this instrument where pullbacks in 3, 7, and 11 waves should continue to be supported as long as prices remain above the ((2)) lows at 94.79



    [​IMG]
     
  12. Elliottwave-Forecast.com

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    Short term Elliott wave view in Oil (CL_F) suggests the rally from February 5 low shows a 5 swing bullish sequence. We label the rally as an impulse Elliott Wave structure with a nest. Up from February 5 low, wave 1 ended at 52.2 and wave 2 pullback ended at 49.42. Wave 3 higher is in progress and nesting in another 5 waves. Up from wave 2 low at 42.42, wave ((i)) ended at 52.41 as a diagonal. Wave (i) ended at 50.69 and wave (ii) pullback ended at 49.71. Wave (iii) ended at 51.96, wave (iv) ended at 50.60 and the final leg wave (v) of ((i)) ended at 52.41.

    Pullback in wave ((ii)) ended t 50.9 as a zigzag. Wave (a) of ((ii)) ended at 51.81, wave (b) of ((ii)) ended at 52.34, and wave (c) of ((ii)) ended at 50.90. Oil has broken above wave ((i)) at 52.41 suggesting the next leg higher wave ((iii)) has started. Near term, while dips stay above 50.90, expect Oil to extend higher. Potential target higher is 100% Fibonacci extension of wave ((i)) - ((ii)) which comes at $53.9 - 55.8.

    Oil (CL_F) 1 Hour Elliott Wave Chart
    [​IMG]
     
  13. Elliottwave-Forecast.com

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    In this technical blog, we are going to take a look at the past performance of EURNZD, 1-Hour Elliott wave Charts that we presented to our members. But before looking into the Charts, we need to understand the market nature first. The market always fights between the two sides i.e Buying or Selling. We at Elliott Wave Forecast understand the Market Nature and always recommend trading the no-enemy areas. We called those no-enemy areas which are reflected as blue box areas on our Charts. They usually give us the reaction in favor of market direction in 3 swings at least. Now, let us take a quick look at the EURNZD Charts and structure below:

    EURNZD 1 Hour Elliott Wave Chart
    [​IMG]

    The Decline from October 2019 peak unfolded in 5 waves impulse structure thus suggested that it's a continuation pattern. Therefore, wave (B) bounce was expected to fail in 3 or 7 swings bounce to do another 5 waves lower to complete the 5-3-5 structure. Above is the 1 Hour Elliott wave Chart from 2/04/2020 Asia update. In which the rally from December 31, 2019, low unfolded as a zigzag structure in a lesser degree cycle. When wave A ended at 1.6920 high, wave B ended at 1.6659 low. Wave C managed to reach the no enemy area at 1.7053-1.7206 100%-161.8%Fibonacci extension area of A-B. From there, the pair was expected to resume the next extension lower or to do a 3 wave reaction lower at least.

    EURNZD 1 Hour Elliott Wave Chart
    [​IMG]



    EURNZD 1 Hour Elliott Wave Chart from 2/18/2020 NY update. In which the pair is showing reaction lower taking place from the blue box area ( no enemy area). Allowed our members to create a risk-free position shortly after taking the short positions as per Elliott wave hedging. Near-term, while bounces fail below 1.7180 high the pair is expected to resume the downside. However, a break below December 31, 2019 low (1.6587) would remain to be seen to confirm the next extension lower to avoid double correction higher.
     
  14. Elliottwave-Forecast.com

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    In this blog, we are going to take a look at the Elliottwave chart of CADJPY. The rally from August 26, 2019 low unfolded as 5 waves impulsive move up in wave (A) as a diagonal. Based on Elliottwave theory, the impulsive wave up will be followed by 3 waves correction before resuming to the upside. Therefore, we were expecting to buy at the extreme area, which is the 100% - 161.8% extension of wave W-X. We showed this area with a blue box. The blue box is the area where we expect buyers to appear for an extension higher or 3 waves bounce at least.

    CADJPY 2.3.2020 4 Hour Elliott Wave Update
    [​IMG]

    The chart from 2.3.2020 4 hour update showed that CADJPY ended wave (A) at 84.57 high. While below that high, we expect the pair to correct the cycle from 8.26.2020 low in wave (B), which unfolded as a a double three. Wave W of (B) ended at 83.07 low and wave X of (B) ended at 83.55 high. From there, we expect wave Y of (B) to end at the 100%-161.8% Fibonacci extension of W – X. That area should see buyers appear for a 3 waves bounce at least or an extension higher. The chart showed that the pair has already reached this area. However, it is possible for the pair to extend lower before ending wave (B).

    CADJPY 2.18.2020 4 Hour Elliott Wave Update
    [​IMG]

    The chart from 2.18.2020 4 hour update showed that CADJPY did not extend lower and ended wave (B) at 81.58 low. The pair then bounced higher from there. Wave 1 ended at 82.82 high and wave 2 ended at 82.25 low. Wave ((i)) ended at 83.12 high and wave ((ii)) ended at 82.63 low. As long as the pivot at 82.63 low stays intact, the pair can continue to extend higher in wave (C) and the dip in 3,7,11 swings should be supported. A break above wave (A) high at 84.57 high will confirm the extension higher.
     
  15. Elliottwave-Forecast.com

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    Hello fellow traders. INDU is another instrument that we have been trading lately . In this technical blog we’re going to take a quick look at the Elliott Wave charts of INDU, published in members area of the website. As our members know, INDU is showing higher high sequences in the cycle from the December 2018 and January 31st low. The price structure is calling for further strength in the index. Consequently, we advised members to avoid selling INDU and keep on buying the dips in the sequences of 3,7,or 11 swings whenever get chance. In further text we’re going to explain Elliott Wave Forecast and Trading strategy.

    INDU 1 Hour Elliott Wave Analysis 2.18.2020
    Cycle from the January 31st low looks incomplete now, calling for further rally ideally. Break of 02/06 peak made INDU bullish against the 28853 pivot in first degree. Pull back is unfolding as Elliott Wave Double Three Pattern ( 7 swings pattern). Correction looks incomplete at the moment. The price still can make another leg down toward equal legs/ blue box area : 29209-29022. At that area we expect buyers to appear for proposed rally or 3 waves bounce at least. . As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. We don't recommend selling it against the main trend. Strategy is buying the dips in 3,7,11 swings against the 28853 low. As soon as the price reaches 50 Fibs against the (x) blue high, we should make Long Positions risk free.

    You can learn more about Elliott Wave Double Three Patterns at our Free Elliott Wave Educational Web Page.

    [​IMG]

    INDU 1 Hour Elliott Wave Analysis 2.19.2020
    INDU found buyers at 29209-29022 , the Blue Box area. We got nice reaction from there so far. At this stage we are calling wave ((ii)) blue pull back completed at 29099 low. However we would like to see further extension higher and break above 02/13 high to confirm next leg up is in progress. Otherwise break below current short term low : 29099 would open possibility for a deeper correction.

    Keep in mind that market is dynamic and presented view could have changed in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.

    [​IMG]

    Elliott Wave Forecast
     
  16. Elliottwave-Forecast.com

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    Short term Elliott wave view in NASDAQ (NQ_F) suggests the Index ended the cycle up from February 1, 2020 low in wave 1 at 9687.50 high. The index then corrected that cycle up in wave 2 as a zig-zag. Wave ((a)) of 2 ended at 9655.50 low. The bounce in wave ((b)) ended at 9669.25 high. It then resumed lower in wave ((c)) of 2, which ended at 9536.85 low. The index has since broken above wave 1 high and has resumed higher in wave 3. The internal subdivision is unfolding as a 5 waves impulse Elliott Wave structure.

    Up from wave 2 low at 9536.85, Wave i of (i) ended at 9677.75 high. It then corrected in wave ii and ended at 9652.25 low. From there, wave iii rally ended at 9748.75 high and wave iv pullback ended at 9719.75 low. The index then resumed higher and ended wave v of (i) at 9763 high. Currently, the index is doing a pullback in wave (ii) to correct the cycle from February 18 low (9536.85). While above 9536.85 low, the dip is expected to continue finding support in 3,7, or 11 swings for further upside.

    NASDAQ (NQ_F) 1 Hour Elliott Wave Chart
    [​IMG]
     
  17. Elliottwave-Forecast.com

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    Bausch Health (Ticker: BHC) reported Q4 revenue of $2.22 billion, which is a 5% YoY increase. The result was slightly higher than the consensus estimate of $2.2 billion. The company also reported a $1.51 billion net loss, or $4.3 per share using Generally Accepted Accounting Principle (GAAP). This is a significant drop compared to the net loss of $344 million, or 0.98 per share in Q4 2018. Non-GAAP Q4 net income rose to $404 million, a 10% YoY increase or $1.15 per share. This compared to non-GAAP earnings of $1.05 / share in Q4 2018.

    The GAAP net loss in Q4 is primarily due to the accrual of legal reserves for litigation. The company sets up this reserves to settle a Valeant stock drop lawsuit that hit investors in 2015. The non-GAAP EPS adjusted out this figure which brings the profit up. Moving forward, the company gave a guidance of a full year revenue of $8.65 - 8.86 billion in 2020. The guidance on Adjusted Earnings before interest rates, depreciation and amortization (EBITDA) came at $3.5 - 3.65 billion.

    BHC Daily Elliott Wave Chart
    [​IMG]

    Daily Elliot Wave chart above suggests the stock has incomplete sequence from 4.24.2017 low. A 100% extension from April 2017 should see the stock reaching $37.2 - $42 area. Furthermore, if we are correct that the rally from 4.24.2017 low to 10.3.2018 high is in 5 waves diagonal, then we also need at least a 5 waves move higher from 12.26.2018 low ($17.17). So far the rally from $17.17 low is only in 3 waves, thus another leg higher is possible as far as the stock stays above $17.17.

    BHC 4 Hour Elliott Wave Chart
    [​IMG]

    Looking at the 4 hour chart above, decline from wave ((3)) high on 12.13.2019 appears corrective. It has overlapping characteristic and stays within a well-defined channel. The cycle from 12.13.2019 high now shows a complete 100% extension in 7 swing at the blue box. As far as the invalidation level at $18.75 low holds, the stock has a chance to start bouncing soon in 3 waves at least if not extending higher.
     
  18. Elliottwave-Forecast.com

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    Virgin Galactic ($SPCE) has had an impressive rally after setting all time lows after its IPO in the fall of 2019 and continues to impress as it extends the rally in a wave ((3)) impulse. Up from the 11/25/19 lows at 6.90, SPCE ended a 5 waves cycle on 1/3/20 at 11.90 in wave ((1)) and favoured to have ended wave ((2)) on 1/6/20 at 11.06 in a shallow correction. From there a nest blue (1) cycle ended on 1/22/20 at 19.83 and blue (2) is favoured bottomed on 1/27/20 at 15.61. From there a further nest in the form of a red 1-2 and ((i))-((ii)) has been set and a wave ((iii)) breakout occurred on 2/10/20. Wave ((iii))-((iv)) is favoured complete with a red 3 top in place on 2/20/20 at 40.49 with a red 4 currently underway. The wave count sequence is currently incomplete and can still reach higher before topping for a red I cycle.

    It is important to realize that FOMO/MOMO is behind an extended impulse like this and using proper risk management is absolutely essential when trading or investing in a stock such as SPCE that has enjoyed 500% gains since the lows on 11/25/19. The Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading and investing.



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