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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

    Elliottwave-Forecast.com Active Member

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    In this technical blog, we are going to take a look at the past performance of GE 1-Hour Elliott wave Charts. That we presented to our members. In which, the decline from the 3/26/2020 peak is taking place as an ending diagonal structure in higher degree wave (5) with the sub-division of 3-3-3-3-3 structure in each lower. Also, the decline from that peak showed a lower sequence with a bearish sequence stamp called for more downside to take place. Therefore, our members knew that the sequence is incomplete. And selling the intraday bounce in 3 or 7 swings into the direction of the right side tag remained the preferred path. We will explain the Elliott wave structure & selling opportunity our members took below.

    GE 1 Hour Elliott Wave Chart
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    GE 1 Hour Elliott Wave Chart from 5/08/2020 Pre-Market update. In which, the bounce to $6.99 high ended wave 2 of a diagonal. Down from there, the decline in red wave 3 unfolded as a zigzag structure. Whereas wave ((a)) ended at $5.97 low. Wave ((b)) bounce was expected to find sellers at the blue box area at $6.36- $6.54 100%-161.8% Fibonacci extension area of (w)-(x). From there, the stock was expected to see sellers looking for the next extension lower or for 3 wave reaction lower at least.

    GE 1 Hour Elliott Wave Chart
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    Here's the 1 Hour Chart of GE from 5/13/2020 Midday update. Showing the reaction lower taking place from the blue box area at $6.36- $6.54. As we can clearly see that the stock was able to make new lows. Allowed members to create a risk-free position shortly after taking the short trade.
     
  2. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    $FXY Elliott Wave & Longer Term Cycles

    Firstly the $FXY instrument inception date was 2/12/2007. The instrument tracks changes of the value of the Japanese Yen versus the US Dollar. There is plenty of data going back into the longer term 1970’s time frame available for the currency cross rate in the USDJPY. The foreign exchange pair shows a larger degree time frame low is in place in October 2011 at 75.57. Comparatively, the FXY instrument reflects a price high at 130.22 in October 2011.

    The analysis continues below the FXY Monthly chart.

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    Secondly the FXY instrument mirrors USDJPY price highs and lows inversely as the initial above paragraph suggests. In the FXY instrument the decline from the October 2011 high into the January 2015 lows is an Elliott wave impulse. Internally there are a couple of degrees shown there in the red & blue colors that finished the black wave ((I)). From the January 2015 lows the bounce higher in both price and momentum indicators suggested the cycle lower had ended there.

    The analysis continues below the FXY Weekly chart.

    [​IMG]

    In conclusion: As the FXY weekly chart suggests the instrument ended a larger degree cycle in an Elliott wave impulse of five waves lower in January 2015. The bounce from there is in five waves as well however of smaller degree in the wave (a) in blue that ended August 2016. The price action from there has been sideways and in three swing moves. Moreover this leaves the impression the instrument is in a triangle wave (b) in blue. That suggests price will be constricted for some time in between the red “a” 81.33 lows & “b” 93.23 highs. While this plays out with price remaining above the January 2017 lows the FXY can see a turn higher. It can reach the 100.87 – 105.51 area before the larger degree time frame bearish cycle takes over again taking prices substantially lower.
     
  3. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    The decline in Pound Sterling from 4.15.2020 high is unfolding as a 5 waves impulsive Elliott Wave structure, Down from 4.15,2020 high, wave 1 ended at 1.2245 and bounce in wave 2 ended at 1.2643. Wave 3 is currently in progress as an impulse in lesser degree. Down from wave 2 at 1.2643, wave ((i)) ended at 1.2264 and bounce in wave ((ii)) ended at 1.2467. Pair then resumes lower in wave ((iii)) with subdivision as another impulse. Wave (i) of ((iii)) ended at 1.228, and bounce in wave (ii) of ((iii)) ended at 1.2378. Wave (iii) of ((iii)) ended at 1.2164, and wave (iv) of ((iii)) is proposed complete at 1.224.

    Expect pair to extend lower in wave (v) of ((iii)) lower, then bounce in wave ((iv)) before another leg lower in wave ((v)). The 5 waves down should end wave 3 from 4.15.2020 high. Potential target for wave 3 is 161.8% extension of wave 1 which comes at 1.199. While pivot at 1.2467 high stays intact, expect rally to fail in 3, 7, or 11 swing for more downside

    Pound Sterling (GBPUSD) 1 Hour Elliott Wave Chart
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  4. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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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 stock, published in members area of the website. As our members know, BABA has been reacting nicely from blue box areas. Recently the stock found buyers, after completing Elliott Wave Zig Zag Pattern. In further text we’re going to explain Elliott Wave Forecasts.

    BABA 1 Hour Elliott Wave Analysis 5.4.2020
    BABA has reached extreme zone from the 04/17 peak at 192.15-188.05 . You can see that area on the chart below marked as a blue box . Proposed cycle from the April 17th peak is unfolding as Elliott Wave Zig Zag. We expect buyers to appear at 192.15-188.05 for 3 waves bounce at least. As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.

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

    [​IMG]

    BABA 1 Hour Elliott Wave Analysis 5.6.2020
    BABA found buyers at 192.15-188.05 ( Blue Box area) as we expected. Elliott Wave Zig Zag Pattern completed at 189.52 low. Current view suggests BABA is correcting cycle from the 216.84 peak, when cycle from the May 4th low can be unfolding as double three pattern. Cycle from the low looks incomplete at the moment and we expect more short term strength up toward 203.0-208.4 area. At that zone sellers should ideally appear for 3 waves pull back at least.

    [​IMG]

    BABA 1 Hour Elliott Wave Analysis 5.14.2020
    Rally from the 05/04 low turned into 5 waves structure. Anyway sellers appeared right at the 203.0-208.4 ( previous blue box area ) and we got pull back as expected. Pull back against the 189.5 low is also unfolding as Elliott Wave Zig Zag. We expect more short term weakness toward 195.75-190.21 area where buyers should ideally appear again for further rally or 3 waves bounce alternatively. We don't recommend selling the stock.

    [​IMG]

    BABA 1 Hour Elliott Wave Analysis 5.14.2020
    The stock found buyers again at 195.75-190.21 blue box area. We got nice bounce after completing Elliott Wave Zig Zag pattern.

    Keep in mind not every chart is trading recommendation. 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
     
  5. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    Divergence trading patterns can signal traders of possible trade setups. There are 2 types of divergence patterns, regular divergence and hidden divergence. Both patterns can signal a trader on which side to trade the market. A divergence pattern is when price is moving in one direction but the oscillator indicator is moving in a different direction.

    Regular (Trend Reversal Pattern) : When price is in a uptrend making a higher high and the oscillator indicator is making a higher low this is a regular bearish divergence pattern. When price is in a downtrend making a lower low but the oscillator indicator is making a lower high this is a regular bullish divergence pattern. This pattern is a sign of a trend reversal.

    Hidden (Trend Continuation Pattern) : When price is in a uptrend making a higher low and the oscillator indicator is making a lower low this is a hidden bullish divergence pattern. When price is in a downtrend making a lower high but the oscillator indicator is making a higher high this is a hidden bearish divergence pattern. This pattern is a sign of trend continuation.

    Both patterns can be found during a trending sequence. A trending sequence is when the instrument is on a higher high/higher low sequence (HH/HL) for an uptrend and on a lower low/lower high sequence (LL/LH) for a downtrend.

    There are many different oscillator indicators that a trader can use to spot divergence patterns. RSI, Stochastic, CCI and MACD are some of the most used. In the EURJPY chart below the MACD indicator was used to spot the patterns to catch the move lower. Most traders just use the signal lines of the MACD to spot divergence. The more consistent way to catch true divergence patterns using the MACD is to spot the patterns on both the signal lines and the histogram simultaneously.

    EURJPY Daily Chart May 6/2020 : Regular bearish divergence (trend reversal pattern) was visible in January 2020 when price registered higher highs but the MACD indicator did not. After, price reversed lower and started a downtrend. When price confirmed a downtrend by making lower lows/lower highs a hidden bearish divergence (trend continuation pattern) was visible in March 2020 when price registered a lower high but the MACD indicator registered a higher high. After, price continued the trend lower registering new lower lows and hitting the target level for +710 pips from the January first bearish regular (trend reversal) pattern. *NOTE* Signal lines + histogram together on the MACD indicator was used to spot the patterns.

    [​IMG]

    TIP: Always have multiple strategies all lined up before entering a trade. Never trade using one simple strategy. When multiple strategies line up it allows a trader to see a clearer trade setup.

    Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan

    *** Always use proper risk/money management according to your account size ***

    At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Stocks and ETFs) in 4 different timeframes and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Chat Room. Our clients are always in the loop for the next market move.
     
  6. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    EURGBP Technical Analysis

    On May 5/2020 I posted on social media (Stocktwits/Twitter) @AidanFX "$EURGBP will be watching for possible buying opportunities."

    EURGBP 1 Hour Chart May 8.2020 : The charts below was also posted on social media (StockTwits/Twitter) @AidanFX May 8/2020 showing that a bullish pattern (blue) has formed and price has entered the buy zone looking for another move higher. Bullish divergence market patterns (light blue) and a possible bullish Elliott Wave impulse count was also visible which added more confirmation that a rally higher could happen. I called for traders to BUY the pair and to watch for price to break above the black trend line to confirm bulls have taken control. The bottom chart was posted May 4/2020 showing the same blue bullish market pattern calling for the move higher.

    [​IMG]

    EURGBP 1 Hour Chart May 4/2020

    [​IMG]

    EURGBP 1 Hour Chart May 11/2020 : Chart below shows price breaks higher and broke above the black trend line level confirming bulls have taken control. BUY trades entered and expected a continuation of higher price action to happen in the coming days. Price has hit the 1:2 RR target but I continued to hold full positions for another round higher.

    [​IMG]

    EURGBP 1 Hour Chart May 15/2020 : Price rallies higher, respects the moving average signalling bullish momentum and forms another bullish divergence pattern pushing price higher. Price reaches 1:5 RR target for +185 pips. If you followed me on Twitter/Stocktwits you too could have caught the EURGBP move higher.

    [​IMG]

    Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan

    *** Always use proper risk/money management according to your account size ***

    At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Stocks and ETFs) in 4 different timeframes and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Chat Room. Our clients are always in the loop for the next market move.
     
  7. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    SAP SE is a multinational corporation which is well known as a producer of the enterprise software being used in managing business operations and customer relations. Founded in 1972 and headquartered in Walldorf, Germany, the company's most famous product is the enterprise resource planning (ERP) software. The company is a part of both DAX30 and of SX5E indices. In recent weeks, SAP contributes also actively in the fight against COVID-19 by developing of the contact tracing software. However, will that acttivity help the stock price to recover from the recent fall?

    SAP Monthly Elliott Wave Analysis 05.18.2020
    The monthly chart below shows the SAP stock $SAP traded at XETRA. From the all-time lows, the stock price has developed its first significant push higher in wave (I) of super cycle degree. This impulsive move up has printed a top in September 2000 at 77.50. From the peak, the wave (II) has provided a consolidation of the stock price in 3 waves lower as a zigzag correction towards the October 2002 lows at 9.92. So now, that level became the starting point of a larger move to the upside. The rally higher is the wave (III) of the super cycle degree. As a matter of fact, it reveals a clearly visible Elliott wave impulsive wave structure. Now, it is the preferred view that the wave (III) remains still in progress.

    Within the super cycle in wave (III), the red wave I has ended in April 2006 at 47.68, the red wave II lower has found a bottom in October 2008 at 20.76. From that level on, the wave III has provided an extension higher towards the all-time highs in February 2020.

    [​IMG]

    SAP Weekly Elliott Wave Analysis 05.18.2020 and Outlook
    The weekly chart below shows in more detail the subdivisions of the extended wave III of (III). Wave III has peaked in February 2020 at 129.60. From there, a sharp decline in wave IV has delivered the march low at 81.92. While above there, the price can be now turning up in wave V of (III). In short-term cycles, wave ((1)) of primary degree is currently being corrected lower in the wave ((2)). The pullback should hold above 81.92. Then, SAP stock price should see waves ((3)), ((4)) and ((5)) of V to end the cycle from 2002 lows.

    The target area for the termination point of wave V will be 140.30-158.65. This projection area originates from the inverse Fibonacci relationship of 1.23-1.618 between the lengths of the red waves IV and V. Alternatively, the stock price can do another swing higher and fall lower in a double correction. It can also do a sideways action in wave IV as a triangle. The preferred view remains that the prices will remain above the march lows. Therefore, buyers can enter the market in 3, 7, 11 swings for more upside towards 140.30-158.65 area or for at least another leg higher.

    [​IMG]
     
  8. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    Short Term Elliott Wave view in SPY (S&P 500 ETF) suggests the rally from 3.23.2020 ended at 296.77 as wave ((1)). Pullback in wave ((2)) is proposed complete at 273.07 as the 30 minute chart below shows. The ETF still needs to break above wave ((1)) at 296.77 to confirm wave ((2)) has ended and creates a bullish sequence from 3.23.2020. Internal of wave ((2)) unfolded as a zigzag Elliott Wave structure. Wave (A) ended at 278.69, wave (B) ended at 294.8, and wave (C) ended at 273.07. Wave (C) ended at the blue box, which is 100% - 123.6% Fibonacci extension of wave (A). From there, the ETF has turned higher in wave ((3)) as an impulsive Elliott Wave structure.

    Up from 273.07, wave 1 ended at 286.45 and wave 2 pullback ended at 281.34. Wave 3 remains in progress as an impulse in lesser degree. Up from wave 2 at 281.34, wave ((i)) ended at 285.08, wave ((ii)) ended at 281.89, and wave ((iii)) ended at 296.75. Expect wave ((iv)) pullback to find support while above 273.07 for more upside. As far as pivot at 273.07 low stays intact, expect dips to find support in 3, 7, or 11 swing for further upside.

    SPY 1 Hour Elliott Wave Chart
    [​IMG]
     
  9. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    Shopify (NYSE: SHOP) is one of the best performing technology stocks since its IPO back in 2015. As electronic commerce boomed in recent years, SHOP saw an enormous gain in value up to 2900% punting the stock as one of the fastest growing companies. Despite the majority of stock market being down in 2020%, SHOP was able to resume it's bullish trend and it's already up 80% Year-To-Date.

    SHOP decline back in February was a technical 3 waves correction that faced the entire market and a major low was established on March 13 from where the stock started the next leg to the upside. Based on Elliott Wave Theory, the initial cycle since IPO unfolded as an impulsive 5 waves advance followed by a 3 waves pullback then the stock managed to break the previous peak. Consequently, Shopify opened a new bullish sequence from 2015 low suggesting another impulsive 5 waves advance to take place which a minimum target area at equal leg $899 - $1040 and a potential extension toward 1.618% Fib extension area $1265.

    The impulsive nature of the move is allowing Bulls to maintain control over the trend until it reaches the next target and providing buyers with opportunities to join then main bullish trend during pullbacks in 3 , 7 or 11 swings.

    SHOP Weekly Chart
    [​IMG]
     
  10. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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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 INDU. As our members know INDU has recently given us pull back against the March 18058 low. Pull back unfolded as Elliott Wave Zig Zag Pattern. We expected buyers to show at the Blue Box , calling for rally toward new highs or 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 Zig Zag 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]

    INDU 1 Hour Elliott Wave Analysis 5.13.2020
    We are getting pull back against the March 18058 low. Cycle from the 24806 peak is unfolding as (a)(b)(c) Elliott Wave Zig Zag pattern. First leg (A) blue unfolded as 5 waves down from the peak. Then we got 3 wave bounces in wave (B) , which has made deep retracement against the 24806 peak . And finally, we're doing last leg down (C) blue. Pull back looks incomplete at the moment. We expect more weakness, to complete 5 waves in (c) leg. We don’t recommend selling the Index.

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

    [​IMG]

    INDU 1 Hour Elliott Wave Analysis 5.14.2020
    Wave (C) is still in progress. The price hasn't reached equal legs (A)-(B). We expect another leg down toward 22887-22515 area ( blue box area). At the marked Blue Box area area we expect buyers to appear for further rally toward new highs ideally . As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.

    [​IMG]

    INDU 1 Hour Elliott Wave Analysis 5.19.2020
    INDU found buyers right at the blue box area :22887-22515 area. Pull back wave ((2)) ended as Elliott Wave Zig Zag at the 22696 low. We got nice rally from there, however need to see break above 04/30 peak to which would make bullish higher high sequences in the March 23th cycle. That would be confirmation next leg up is in progress. Short term cycle from the 22696 low is unfolding as 5 waves rally, when we can still be in 4 red pull back.

    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
     
  11. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    Amazon stock (ticker: AMZN) continues to perform well as the demand of the service surges due to the Covid-19. The pandemic forces people to stay at home and buy a lot of things online, which is precisely the strength of Amazon. Technically, Elliott Wave view is calling the rally from March 16, 2020 low as a 5 waves impulsive Elliott Wave structure.

    The larger context (not shown in the short term chart below) suggests Amazon is trading within wave (5) as from March 16, 2020 low. Up from there, wave (1) ended at 1996 and wave (2) pullback ended at 1800. The stock then resumed higher in wave (3) towards 2475, and wave (4) pullback ended at 2245. Wave (5) remains in progress with internal subdivision as another impulse in lesser degree.

    Up from wave (4) at 2245, wave 1 ended at 2419.67 and wave 2 pullback ended at 2337.80. The stock can see a few more highs before ending wave ((i)) of 3. Afterwards, it should pullback in wave ((ii)) of 3 before the rally resumes. Short term, as far as pivot at 2356 low stays intact, expect dips to continue to find support in 3, 7, or 11 swing for further upside.

    Amazon (AMZN) 30 Minutes Elliott Wave Chart
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  12. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    $EURGBP FX Pair Elliott Wave and Longer Term Cycles

    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. From there the pair traded sideways to lower until it made another 5 waves up to the August 2019 highs. That finished an expanded flat structure. Then so much for the old rule of alternation, the decline to the December 2019 lows was five waves. This also completed a larger degree expanded flat. The pair should be bullish in the second larger degree while above there. While above the April 2020 lows during pullbacks expect the pair continues higher above the December 2008 highs.
     
  13. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    In this article, we will take a look at Southwest Airline (ticker: LUV) stock. The airlines industry and stock have been battered due to the corona virus. We do understand that the Fundamentals might not look great right now for the airlines industry. However, fundamentals can change in an hour, and anticipating the move is what matters at the end.

    At EWF, we forecast the market using a combination of technical tools like the Elliott Wave Theory, distribution, RSI, cycles, sequences, and market correlations. We do understand not every trader looks at the market the same way. Many traders use fundamental analysis as the primary tool of trading, which is ok, as far as it works. We always forecast and trade the same way.

    To avoid subjective interpretation, we do not like to present alternate views in our charts. We believe in the idea that a trader's best chance to succeed is to have a system and apply it over and over again with the same criteria. Southwest Airlines' price action is well defined and fits the requirements of a popular Elliott wave structure. An Ending Diagonal appears most of the time in a wave five and follows these guidelines:

    • It appears as subdivision of wave 5 in an impulse or wave C in a zigzag
    • Ending diagonal usually shows overlapping waves 1 and 4 and has shape like a wedge. The overlap between wave 1 and 4 is not a condition, however.
    • The subdivision of an ending diagonal is 3-3-3-3-3.
    The following chart is a representation of an ending diagonal:

    [​IMG]

    We look at the following two charts from $LUV. One chart is in the daily time frame and the other is in 4 hour time frame. We can see how the instrument in the daily time frame seems to create an overlapping structure with lack of momentum. This fits very well with the criteria of an ending diagonal. Right now. we believe a wave ((3) in black degree ends at the low. Wave ((4)) bounce can be underway with 1 more push lower in wave ((5)).

    However, a a huge low could have been formed as well, even when it is too early to tell. The confirmation that the final low is in place will be a break of the downtrend line or a break above wave ((2)) peak. The stock is now trading within a blue box, which is the inflection area where a turn can happen anytime. Reaching the blue box with an ending diagonal structure is enough information for us not to sell and to start looking for opportunity to buy.

    Southwest Airlines (LUV) Daily Elliott Wave Chart
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    Downgrading the time frame, we look at the 4 Hour view below. We can see how the Instrument reacted higher from the blue box area. We can even count the ending diagonal completed. However, we want to wait for wave ((2)) peak to be broken before calling the low in place. The reaction of the lows from wave ((3)) seem to be impulsive. This leads us to believe after three waves pullback, more upside should take place within wave ((4)).

    Southwest Airlines (LUV) 4 hour Elliott Wave Chart
    [​IMG]

    In Conclusion, Southwest Airlines i close to turning higher. When the turn higher happens, a robust rally will take place. Secondly, World Indices will trade higher when this turn happens. After all, it is one market only. Thirdly, by looking at the Daily chart and structure and levels of South West Airlines. it is hard to see another leg lower than the one from 02.20.2020. Consequently, a significant low can be in place. Let's see what the future brings, but it is clear, we are here for the rally.
     
  14. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    GBPNZD broke below 3.19.2020 low (1.9899) creating an incomplete bearish sequence from 3.9.2020 high (2.182). Short term Elliott Wave View suggests the decline from 4.1.2020 high is unfolding as a 5 waves impulse Elliott Wave structure. Down from 4.1.2020 high, wave 1 ended at 2.01396 and wave 2 bounce ended at 2.0478. Internal of wave 2 unfolded as an Expanded Flat Elliott Wave structure. Wave ((a)) ended at 2.035, wave ((b)) ended at 2.011, and wave ((c)) of 2 finished at 2.0478.

    Wave 3 is currently in progress and subdivides into another impulse in lesser degree. Down from 2.0478, wave ((i)) ended at 2.031 and wave ((ii)) bounce ended at 2.0471. Pair then resumed lower in wave ((iii)) towards 2.0057 and wave ((iv)) bounce ended at 2.0192. GBPNZD can see 1 more leg lower in the short term to end wave ((v)) of 3, then it should bounce in wave 4 before the decline resumes. Pair has potential target of 100 - 123.6% Fibonacci extension from 3.9.2020 high which comes at 1.868 - 1.913. Near term bounce should find sellers in the sequence of 3, 7, or 11 swing for more downside.

    GBPNZD 45 Minutes Elliott Wave Chart
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  15. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    Crude Oil prices are staging impressive comeback after last month's collapse to -$30. Sentiment in Oil has vastly improved in the past few weeks. Hopes of the supply cut as well as demand rebound help to support oil. China's oil demand has come back to the pre-Covid 19 level at 13 million barrels/day. Crude storage report on Tuesday turns out to be not as bad as the original forecast. The projection by analysts is for an inventory build of 1.151 million barrels. The EIA forecast was for a slight build but it turned out to be an actual decline of 0.7 million barrels. This fuels the bets that the worst of the industry's storage crisis has passed.

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    Prices are still below levels which most producers can make profit. Thus, many companies and shale drillers shut down the operation. The OPEC+ production cut, combined with shutdown of most oil producers, and rising factory activity in China finally lifted Oil's price up. As the world's biggest oil exporter, Saudi Arabia has said they would cut supply to the lowest level since 2002. Demand for gasoline also starts to recover as drivers slowly return to the road as US and Europe plan to relax the lock down measures.

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    Crude Oil 4 Hour Elliott Wave Chart
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    4 hour chart of WTI Light Crude Oil July contract (CL N20) above shows a possible impulsive rally from 4.21.2020 low. The nest is a possibility but what is clear is that the rally from 5.8.2020 low is an impulse. Short term, the area of 35 - 37.5 may see sellers for 3 waves pullback. This is the 100% extension from 4.29.2020 measured from 5.8.2020. From there, if the nesting structure is playing out, then the pullback should find buyers for more upside.
     
  16. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    In this blog, we are going to take a look at the Elliott Wave chart of RTY_F (E-mini Russell 2000). The 1 hour NY Midday chart update shows that the cycle from April 29 peak is unfolding as a zig-zag pattern. Wave (A) ended at 1220.1 low and wave (B) bounce ended at 1341.7 high. While below 1375.12 high, the bounce in 3,7 or 11 swing is expected to fail. Since wave (A) unfolded as 5 waves structure, the index can see another 5 waves leg lower in wave (C).

    RTY_F 5.12.2020 1 Hour NY Midday Elliott Wave Update
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    The 1 hour Asia chart update from May 14 shows that the pullback extended lower and broke below previous wave (A) low. The pullback looks incomplete, but is close to ending. The 100% extension of wave (A)-(B) where wave (C) can potentially end is at 1150.93-1187.53 area. This area is shown with a blue box, where we expect buyers to appear for 3 waves bounce at least.

    RTY_F 5.14.2020 1 Hour Asia Elliott Wave Update
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    May 21 London chart update shows that the index ended the pullback at the blue box area at 1174.96 low and bounced higher from there. Wave ((i)) ended at 1243.6 high. Wave ((ii)) ended as a flat correction at 1212.60 low. From there, the index pushed higher and ended wave ((iii)) at 1350.7 high. Wave ((iv)) pullback ended at 1297.5 low. Afterwards, wave ((v)) ended at 1354.2 high. Currently, RTY_F has ended the cycle from May 14 low. The index is now expected to pullback in 3,7 or 11 swings before extending for another leg higher in wave C. The index still needs to break above April 29 peak to confirm that the low is in place and to confirm that the next leg up is in progress.

    RTY_F 5.21.2020 1 Hour London Elliott Wave Update
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  17. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    The next entry in the theme of Corona Virus stocks is Inovio Pharmaceuticals Inc. Inovio has had a steady advance during the COVID-19 spreading worldwide. It also remains very technical as with all other stocks. Lets take a look at what they do as a company:

    “The Inovio technology is based on inserting engineered DNA into cells where it becomes incorporated into proteins involved in the immune response to cancers and viruses by producing T cells and antibodies that aid recovery from infection. The technology can be "targeted" to specific types of cancer and immune diseases, such as those produced by a virus.”

    Inovio has had an impressive rally so far this year. The Elliott Wave view seems to be counting technically clean. Let’s take a look below at the Daily view.

    Inovio Daily Elliott Wave
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    Medium term term view from 10/02/2019 lows of 1.92. Wave ((1)) was set at 2.55 on 10/16/2019 and wave ((2)) at 2.09 on 10/31/2019. From there, Inovio had some nesting which resulted in an extended wave ((3)). Wave ((3)) is favoured to be set at 19.36 on 3/09/2019. The count is getting mature to start chasing new longs. After a wave ((5)) of Red I is complete, a lengthy multi month correction may take place in 3,7 or 11 swings before more upside is expected to resume.
     
  18. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    Short term Elliott Wave chart below suggests the dips to 8848.71 ended wave ((4)). This is part of a larger impulsive rally which started from 3.23.2020 low. Wave ((5)) is currently in progress as 5 waves in lesser degree. Up from wave ((4)) at 8848.71, wave 1 ended at 9143, and pullback in wave 2 ended at 8925.50. Index then resumed higher in wave 3 towards 9417.25 and wave 4 pullback ended at 9273.

    Final leg higher in wave 5 ended at 9510.75 and this also completed wave (1) of ((5)). Wave (2) pullback is currently in progress to correct cycle from 5.14.2020 low before the rally resumes. Internal subdivision of wave (2) is unfolding as a double three where wave W should end soon as a zigzag. Index should then bounce in wave X and then turn lower again in 3 waves to complete wave Y of (2).

    Index should then resume higher again in wave (3) of ((5)) provided that pivot at 8848.71 low stays intact. Dips in the Index should find support in 3, 7, or 11 swing against 8848.71 in the first degree. If pivot at 8848.71 low fails, then Index may have ended cycle from 3.23.2020 low. In this case, a larger pullback should happen before Nasdaq resumes again.

    Nasdaq (NQ_F) 30 Minutes Elliott Wave Chart
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  19. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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    Chipotle Mexican Grill (NYSE: CMG) has been able to adapt within the current pandemic situation by adjusting its operations to handle digital orders and and made deliveries.

    Last week , the stock hit a record high, going over $1,000 per share for the first time and it's currently up 125% since the March bottom. The technical outlook for CMG was strongly bullish since last year as CMG rallied into new all time highs by breaking above 2015 peak which created a bullish sequence with a minimum target at $965.

    The impulsive 5 waves advance since IPO was the key for the stock to remain supported and looking for a similar path to the upside after taking 2015 peak to refresh the bullish trend. Consequently, CMG is currently looking for a similar path to take place from 2018 low as the stock is trading higher within a strong 3rd wave within the Grand Super Cycle.

    Chipotle Mexican Grill - CMG - Monthly Chart
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    Based on Elliott Wave Theory, after every 5 waves advance, a correction in 3 waves takes place before the resumption of the main trend which is the main reason the market doesn't run within a straight line. Currently, the rally which started back in March 2020 is aiming for an initial target at equal legs area $1103 - $1266 which can see Bulls taking profit causing a 3 waves pullback in a potential wave II of (III) before the stock will find buyers again to be able to resume the rally.

    The Mexican-food restaurant chain bullish structure is providing an edge for investor and allowing traders to join the trend during Daily pullbacks as long as $415 will remain in place. The next correction will be so important for the stock to define the next key levels to trigger more momentum into the weekly cycle.

    Chipotle Mexican Grill - CMG - Weekly Chart
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  20. Elliottwave-Forecast.com

    Elliottwave-Forecast.com Active Member

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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 DAX . As our members know DAX has recently given us pull back against the March 8239.5 low that has unfolded as Elliott Wave Zig Zag Pattern. We were calling cycle from the March low completed and decline in 3 waves toward Blue Box (buyers zone). In the further text we are going to explain the Elliott Wave Pattern and the Forecast.

    DAX 1 Hour Elliott Wave Analysis 5.2.2020
    Current view suggests March cycle can be completed at the 11242.57 peak as 5 waves rally. As far as the price stays below mentioned high, pull back against the 8239.5 low can be in progress. The price needs to see further separation from the mentioned peak to give us confirmation we are getting pull back against the March 8239.5 low.

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    DAX 1 Hour Elliott Wave Analysis 5.12.2020
    We got 5 waves down from the 11252.77 peak which we assume it's only the first leg of the pull back that is unfolding as a Zig Zag Pattern. After 5 waves down, we got 3 waves bounce in (B) blue that has completed at 10988.39 high. As far as the price stays below (B) blue peak, we should be ideally doing last leg down (C) blue. Pull back looks incomplete at the moment. We expect more weakness toward new lows, to complete 5 waves in (C) blue leg of Zig Zag Pattern.

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

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    DAX 1 Hour Elliott Wave Analysis 5.14.2020
    10988.39 high has held nicely and we got decline. The price has reached equal legs (A)-(B) at 10172.26-9983.8. At the marked Blue Box area area we expect buyers to appear for further rally toward new highs ideally . As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.

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    DAX 1 Hour Elliott Wave Analysis 5.16.2020
    DAX found buyers right at the equal legs (A)-(B) at 10172.26. Elliott Wave Zig Zag pattern ended at the 10159.6 low. Short term bounce looks impulsive so we counted it as wave 1 of the new bullish cycle. We would need to see further separation from the 10159.6 low and ideally break above 04/30 peak to get confirmation next leg up is in progress according to higher time frames.

    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

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    Elliott Wave Forecast
     

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