Elliott Wave Analysis by EWF

[Elliottwave-Forecast]

In this article, we look at incomplete sequences in Palladium Futures and USDMXN and how we can combine the two to forecast the swings in Palladium and look for possible trading opportunities as well. We explain the long-term and mid-term Elliott wave view for Palladium and combine it with the cycles and sequences in USDMXN to forecast the most likely path going forward.

USDMXN Elliott Wave Analysis - April 10, 2023 Weekly Chart​

Chart below shows USDMXN pair showing incomplete bearish sequence since April 2020 peak and it calls for more downside toward 15.986 - 14.518 to complete a zigzag Elliott wave structure down from 04.2020 peak and then we should expect a larger 3 waves bounce to correct the entire decline from 04.2020 peak or a 3 waves bounce to correct the cycle from 11.2021 peak at minimum.

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Palladium Futures Elliott Wave Analysis - April 10, 2023 Monthly Chart​

Chart below is a monthly chart of Palladium futures and it is also showing an incomplete bearish sequence down from the all time peak (March 2022) with secondary peak coming at October 2022. While below this peak, it should see more downside toward 681.53 - 287.42 area and find buyers in the blue box area. Blue Boxes are High-Frequency areas which are based in a relationship of sequences, cycles and calculated using extensions. Our idea is that wave II of (c) in Palladium Futures should be USDMXN at 15.986 - 14.518 area and 3 waves bounce shown in USDMXN should be wave III, IV and V of (c) lower in Palladium.

Palladium Futures Elliott Wave Analysis - April 10, 2023 Daily Chart​

Chart below is the daily chart of Palladium which shows a zoomed in view of the decline since the peak at March 2022 and also from the secondary peak at 2364.20. We can already see 3 waves completed so one more low should make it a five waves impulsive decline and then a three waves bounce should follow at minimum which should see sellers appearing in three, seven or eleven swings for the next leg lower to complete the sequence.



Source: https://elliottwave-forecast.com/video-blog/palladium-futures-incomplete-sequence-buying-area/

 

[Elliottwave-Forecast]

HeidelbergCement is a German multinational building materials company. Today, it is the largest producer of construction aggregates in the world. It is number 2 in production of cement and number 3 worldwide in ready mixed concrete. Founded in 1874 and headquartered in Heidelberg, Germany, HeidelbergCement is a part of DAX40 index. One can trade it under the ticker $HEI at XETRA.

In the initial article from October 2021, we have explained that the pullback from April 2021 offers an opportunity. Later, in August 2022, we have identified next support area. The price has reached that area and shows a reaction higher in 5 waves. In the present article, we provide an update while discussing price patterns and targets.

HeidelbergCement Monthly Elliott Wave Analysis 04.12.2023​

The monthly chart below shows the HeidelbergCement stock $HEI traded at XETRA. From all-time lows, the stock price has developed a strong initial nest. Just to recall: A nest is a sum of waves 1 and 2 of the same degree. First, black wave ((I)) has ended in May 2006 at 96.11. Then, wave ((II)) has corrected the cycle higher within an expanded flat structure lower. Hereby, wave (b) of ((II)) has printed the all-time highs in April 2007 at 112.03. The consolidation within wave ((II)) has ended in February 2009 at 18.01.

From February 2009 low, a new cycle in wave ((III)) has started. Break above 112.03 highs will confirm that. Within wave ((III)), $HEI is showing a series of nests. First, waves (I)-(II) have ended on March 2020 at 29.00. From there, a second nest is also in place. First, red wave I has ended in April 2021 at 81.04. Then, red wave II has found a bottom in September 2022 at 38.73 lows. While above there, acceleration higher in red III of blue wave (III) of black wave ((III)) is taking place.

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HeidelbergCement Daily Elliott Wave Analysis 04.12.2023​

The Daily chart below shows in more detail the pullback in wave II from the April 2021 peak at 81.04 and reaction higher within wave III from the blue box area. The consolidation pattern in red wave II is most likely a zigzag pattern. First, impulse in black wave ((A)) has found its bottom in December 2021 at 56.60. Then, a bounce in black wave ((B)) has set connector in February 2022 at 68.08 (both not shown). From there, ending diagonal in wave ((C)) being 3-3-3-3-3 structure has reached into 43.59-29.00 blue box area.

Investors and traders who bought $HEI from 43.59-29.00 area could enjoy the rally in red wave III and should further stay long. The advance from 38.73 lows in black wave ((1)) of red wave III looks mature. Soon, a pullback in black wave ((2)) should allow joining the rally. Hereby, one can buy dips in $HEI in 3, 7, 11 swings against 38.73 lows. Once wave ((2)) ended, further acceleration higher in black wave ((3)) of red wave III should take place. The target for red wave III is 90.68-122.83 area and beyond. As an outlook, blue wave (III) of ((III)) should extend towards 107.22-155.52 area and possibly higher. The target for the entire wave ((III)) will be 114.42-174.01 area. Buying dips in $HEI offer, therefore, a high profit potential for those who would like to diversify their portfolio by indirect investment in commodities and construction business.



Source: https://elliottwave-forecast.com/stock-market/heidelbergcement-reaction-buying-area/

 

[Elliottwave-Forecast]

Hello Traders in this article we will go through LTCUSD. Litecoin has been trading higher within a cycle from 03.11.2023. After it completed wave ((iii)) higher from that cycle within it's wave ((iv)) pullback it found buyers within equal legs area.

Here at Elliott Wave Forecast we have developed a system that allow us to spot areas of the market in which we can expect a reaction in favor of the current trend or minimum a 3 waves reaction. This way we are able to enter the market with a defined risk and entry, alongside with a target area.

In the case of Litecoin we had completed the first leg lower in (a) and connector bounce in (b) of ((iv)) and we were able then to project the area of (c) of ((iv)). This is what we call equal legs area. From there we expect buyers to enter for wave ((v)) higher or produce a minimum of 3 waves reaction higher at least. Let's have a look on LTCUSD 1 hour cycle from 03.28.2023.

LTCUSD 1 hour London update 03.28.2023​

As we can see it has entered the equal legs area 87.93 - 83.74 within wave (c) of ((iv)). From that area we expected a reaction higher within wave ((v)) or minimum 3 waves reaction higher.

Let's fast forward now to the 1 hour London update from 04.11.2023 to see what ended up happening.

LTCUSD 1 hour London update 04.11.2023​

From the low of 85.69 Litecoin has traded higher into wave (i), completed pullback in wave (ii) and extending higher in wave iii of (iii). We can soon expect it to end wave (iii) pullback in (Iv) before it makes one more high into (v). Consequently this will be ending wave ((v)) and cycle from 03.11.2023. You can learn what's next for Litecoin amongst other cryptocurrencies such as Bitcoin, Ethereum, Cardano, Matic & Dogecoin by becoming a member. Cryptos belong to our Group 2 instruments.

Source: https://elliottwave-forecast.com/cryptos/ltcusd-wave-iv-found-buyers-at-equal-legs-area/

 

[Elliottwave-Forecast]

Home Depot (HD), is an American multinational home improvement retail corporation that sells tools, construction products, appliances, and services, including fuel and transportation rentals. Home Depot is the largest home improvement retailer in the United States.

The shares of the Home Depot HD company have entered a very interesting stage. After reaching all-time highs in December 2021, the price fell considerably. According to the Elliott Wave Principle, the stock price should continue to fall. The structure that is developing appears to be a zigzag correction, and if so, it still has a lot of things to say.

Home Depot HD Monthly Chart April 2023​

As we can see above on the monthly chart, HD finished its first grand cycle since the company's inception in late 1999, reaching $70.08. We called this movement the wave (I). At this price, it entered in a corrective phase that ended in 2008 recession at $16.66. We labeled it as wave (II). Since then, the price kept a strong bullish trend, rising as high as $247.70 to complete wave (III). Then, we clearly see the wave (IV) at the beginning of the COVID19 pandemic, in 2020, when the price fell to $139.84. From here, it had again a strong rebound creating a new impulse, being wave IV as a running flat, thus wave V is the shortest of the impulse. This completed wave (V) at $420.79 and wave ((I)) of the grand super cycle in December 2021.

The Correction Started in December 2021​

Since 2021 high, the price of HD has remained bearish and to complete the corrective structure it should continue to decline further. This is because to complete a corrective structure is needed a minimum of 3 waves, where the third wave must break the end of the first wave at least marginally. This suggests further drops in the price of HD which should ideally hit the blue box, this is in the area of $189.61 – $92.22. If we see 5 waves down from wave (b) in this area, this is a good opportunity to look for longer-term buys. However, it is not 100% certain that HD will go as low as $189.61. If 5 waves marginally breaks the low of wave (a) at $263.85, wave (c) of ((II)) and wave ((II)) could be over to continue a new rally.

Source: https://elliottwave-forecast.com/stock-market/home-depot-hd-correcting-time-cycle/

 

[Elliottwave-Forecast]

Crocs Inc., (CROX) designs, manufactures, markets & distributes casual lifestyle footwear & accessories for men, women & children worldwide. The company sells its products in approximately 85 countries through wholesalers, retail stores, e-commerce sites & third-party marketplaces. It is based in Colorado, US, comes under Consumer Cyclical sector & trades as “CROX” ticker at Nasdaq.

CROX ended impulse Elliott Wave sequence as wave I at $183.88 high started from November-2008 low. Below there, it proposed ended wave II at $46.08 in zigzag correction ended in blue box area. It favors higher in ((1)) of III & expects further upside before pullback starts in ((2)) correction.

CROX - Elliott Wave Latest Weekly View:​

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It made all time low at $0.79 in November-2008. It placed ((1)) of I at $32.47 high & ((2)) at $8.40 low as flat correction. Above there, it favored higher in ((3)) as extended sequence ended at $163.18 high. Wave ((4)) was shallow correction ended at $125.54 low as 0.236 Fibonacci retracement. Finally, it ended ((5)) as I at $183.88 high. Below I high, it placed ((A)) at $115.85 low & ((B)) at $136.81 high. Wave ((C)) of zigzag correction ended at $46.08 low within blue box area as II.

CROX - Elliott Wave Latest Daily View:​

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Above II low, it favors higher in ((1)) of III. III red will confirm above I high. It placed (1) at $83.64 high, (2) at $65.17 low, (3) at $143.50 high as extended sequence and (4) at $109.47 low as 0.382 Fibonacci retracement. Currently, it favors higher in 3 of (5) & expect new high above (3) to finish wave ((1)). Later it expects a larger pullback in ((2)) in 3, 7 or 11 swings, which remain supported above II low to resume higher. Buyers from the blue box area is already having risk free position.

Source: https://elliottwave-forecast.com/stock-market/crox-reacted-higher-from-blue-box-area-favors-upside/

 

[Elliottwave-Forecast]

Raytheon Technologies Corp (NYSE: RTX) is a leading provider of advanced technologies and services for aerospace and defense industries. The company has a long history of innovation and has been a key player in the defense industry for decades. In this article, we will examine the current Elliott Wave technical structure of RTX. We'll discuss potential outcomes for investors to consider, providing valuable insights into the stock's future direction.

The technical structure of Raytheon Technologies Corp stock shows a promising bullish trend. Since the March 2020 low, the stock has rallied in an impulsive structure with wave ((1)) and ((2)) occurring in April-May 2020, followed by a wave ((3)) rally that ended in April of last year at $106.02. A wave ((4)) correction then took place, ending in September 2022 at $80.27 with three swings lower.

Since that low, RTX established a new bullish sequence after breaking above January 2023 peak of $103.95. This break higher opened the daily upside for the stock toward the equal legs area at $117.2 - $131.9, which is suggesting a move into new all-time highs. After completing its five-wave advance since the March 2020 low, RTX may undergo a larger correction in wave II. This 3 waves pullback will provide a potential buying opportunity for long-term investors who are bullish on the stock.

To support a bullish outlook, the short-term structure of the stock is expected to remain above the key level of January 2023 low at $93.34. As long as pullbacks in the stock remain above this level, RTX will continue to have potential for upside momentum.

RTX Elliott Wave Weekly Chart​

Source: https://elliottwave-forecast.com/stock-market/raytheon-technologies-rtx-bullish-rally/

 

[Elliottwave-Forecast]

Soybean Oil is one of the grain & oilseed commodities, along with wheat, soybeans, corn, rice, oats and others. Just behind palm oil, it is the second most used vegetable oil, basically, for frying and baking. Also, soybean oil finds applications medically and, when processed, for printing inks and oil paints. One can trade Soybean Oil futures at Chicago Board of Trade in contracts of 60’000 pounds each under the ticker ZL #F.

In the initial article from November 2020, we have forecasted an new cycle higher from an important bottom in April 2020. We were right. Indeed, the prices have extended to the new all-time highs by printing a top at 73.74. Then, in December 2021, we were expecting more upside within bullish sequence towards 95.99-112.82 area. Again, we were right. Another bullish cycle has brought the prices towards 90.69 highs in April 2022. Now, Soybeans a pulling back and provide an opportunity to join the rally. Here, we discuss the wave structure of ZL #F, incomplete bullish sequence, buying setup and the targets. .

Soybean Oil Quarterly Elliott Wave Analysis 04.19.2023​

The quarterly chart below shows the soybean oil front contract ZL #F. From the all-time lows, the prices have developed a cycle higher in blue wave (w) of a super cycle degree. It has ended in March 2008 at 71.23. From the highs, a correction lower in wave (x) has unfolded as an Elliott Wave zigzag pattern. In 12 years, ZL #F has become cheaper by more than 60% reaching 24.64 level. It is the preferred view that an important bottom on April 2020 has been set and the blue wave (x) has ended. From the lows, a ney cycle up in wave (y) has been confirmed by breaking above 71.23 highs. In shorter cycles, red wave w of wave (y) has ended. Now, pullback in wave x is taking place. Based on the bullish sequence, current dip should find support in 3, 7, 11 swings for another extension higher in red wave y of blue wave (y). Therefore, investors and traders can be looking to buy it in 3 swings off the top. Target is 95.99-112.82 area.

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Soybean Oil Weekly Elliott Wave Analysis 04.19.2023​

The weekly chart below shows in more detail the advance from the April 2020 lows in 3 swings of red wave w and the ongoing pullback in red wave x. From the bottom at 24.64, red wave w higher has unfolded as a zigzag structure. Hereby, 3rd swing in black wave ((C)) has not reached 100% extension and shows truncation. From the 90.69 highs in April 2022, a pullback lower in red wave x unfolds as another zigzag structure. Firstly, black wave ((A)) has ended in July 2022 at 56.68 lows. Then, a connector in black wave ((B)) has printed a lower high in November 2022 at 78.64. From there, black wave ((C)) has broken 56.68 lows opening up a bearish sequence. Now, expect ZL #F to reach into the 44.67-24.64 buying area. There, investors and traders should be waiting to go long. As next, blue box area should provoke a reaction higher in black wave ((A)) of red wave y.



Source: https://elliottwave-forecast.com/commodities/soybean-oil-long-opportunity/

 

[Elliottwave-Forecast]

In this technical blog, we will look at the past performance of the 1-hour Elliott Wave Charts of the Cardano ticker symbol: $ADAUSD. The rally from the 10 March 2023 low showed a higher high sequence & provided a short-term extreme trading opportunity. In this case, the pullback managed to reach the equal legs area & provided a buying opportunity. So, we advised members not to sell it but to buy the equal legs area for a minimum reaction higher to happen. We will explain the structure & forecast below:

Cardano 1-Hour Elliott Wave Chart From 04.17.2023​

Here’s the Elliott wave Chart from the 04/17/2023 New York update. In which, the rally to $0.462 high ended the wave (iii) & made a pullback in wave (iv). The internals of that pullback unfolded as Elliott wave double three structure where lesser degree wave w ended at $0.442 low. Then a short-term bounce to $0.455 high ended wave x & started the next leg lower in wave y towards $0.435- $0.422 equal legs area. From there, buyers were expected to appear looking for new highs ideally or for a 3-wave bounce minimum.

Cardano Latest 1-Hour Elliott Wave Chart From 04.18.2023​

Above is the Latest Elliott wave Chart from the 4/18/2023 London update. In which the pair is showing a reaction higher taking place from the equal legs area. Right after ending the double correction. Allowed members to create a risk-free position shortly after taking a long position. But a break above $0.462 high would still be needed to confirm the next leg higher minimum towards $0.469- $0.482 area before the next pullback takes place.

Source: https://elliottwave-forecast.com/cryptos/cardano-reacting-higher-equal-legs-area/

 

[Elliottwave-Forecast]

McDonald's (MCD) is the world's largest fast food restaurant chain, serving over 69 million customers daily in over 100 countries in more than 40,000 outlets as of 2021. McDonald's is best known for its hamburgers, cheeseburgers and french fries, although their menu also includes other items like chicken, fish, fruit, and salads.

Since the largest fast food franchise in the world was created, it has been a money-making machine. The share prices has always kept bullish, facing very well catastrophic scenarios such as the last financial and real estate crisis of 2008. Only in certain specific periods of history can we see that the value dropped more than 40% of its price. In 1975, the oil crisis; 1987, Black Monday; in 2000 with the dotcom crisis and now with the COVID19 pandemic. If you are a long-term investor, this MCD stock should definitely be in your portfolio.

McDonald's MCD Quarterly Chart April 2023​

In the chart above, we have MCD's quarterly elliott wave analysis. The first important cycle was completed before the dotcom crisis, ending wave (I) at $49.56. The recessive period ended at the beginning of 2003, lowering the price to $12.12 and ending wave (II). Then, it had 10 years of growth reaching the price of $103.70 in 2013 with more than 700% yield. This was wave (III). In this year it entered a period of lethargy and sideways movement ending the wave (IV) at $87.50. The last 5 waves completed an impulse as wave (V) at $221.93 and all the grand super cycle ((I)) in 2019.

McDonald's MCD Weekly Chart April 2023​

In the weekly chart we can clearly see the retracement of the entire wave ((I)). The correction took on a flat Elliott Wave structure. Wave (a) ended at $187.55, the corrective bounce reached $218.38 completing wave (b). The drop in the form of an impulse occurred at the beginning of the COVID19 pandemic. Wave (c) ended at $124.23 and so did wave ((II)) in a fast pullback with losses above 43% in March 2020. Since this date, MCD holds a bullish stock price, reaching almost at $300 dollars per share. As long as the price remains above $217.68 and more importantly above $124.23, the MCD share price should continue the long-term rally within wave ((III)).

Source: https://elliottwave-forecast.com/stock-market/mcdonalds-mcd-bullish-long-term/

 

[Elliottwave-Forecast]

United Natural Foods Inc., (UNFI) together with its subsidiaries, distributes natural, organic, specialty, produce & conventional grocery & non-food products in the US & Canada. It operates in two segments, wholesale & retail. It is based Providence, Rhode Island, US, comes under Consumer Defensive sector & trades as “UNFI” ticker at NYSE.

As mentioned in previous article, UNFI ended I at $57.89 high as impulse sequence & favors corrective pullback in II towards $23.66 - $8.63 area before turning higher. It placed ((B)) at $47.88 high as flat connector & favors lower in ((C)) of II before upside resumes.

UNFI - Elliott Wave Monthly View From 6.16.2022:​

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It started impulse up from December-1999 low & favored ended (I) at $83.91 high. Later, it corrected in zigzag structure & ended it at $5.00 low as (II) correction. Above there, it against started trading higher in impulse sequence. Within (I), it placed I at $38.40 high & II at $12.83 low. While above there, it favored ended III at $79.64 high as third wave extension & placed IV at $58.04 low. Finally, it ended V at $83.91 high as (I). Below there, it placed (II) at $5.00 as zigzag correction before it resumes upside in I.

UNFI - Elliott Wave Latest Monthly View:​

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Above (II) low, it placed ((1)) at $23.38 high & ((2)) at $14.23 low. It favored ended ((3)) at $42.40 high & ((4)) at 30.61 low. Finally, it ended ((5)) at $57.89 high as wave I of (III). Below there, it placed ((A)) at $33.63 low & ((B)) at $47.88 high as running flat correction. Currently, it favors lower in ((C)) leg towards $23.66 - $8.63 area to finish wave II before turning higher in III of (III).

UNFI - Elliott Wave Latest Weekly View:​

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Short term, it favors a corrective bounce in (4) of ((C)) followed by weakness in (5) within blue box area. Buyers expect to enter the market within blue box area for further upside or at least larger 3 swing larger bounce.

UNFI - Elliott Wave Latest Daily View:​

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Source: https://elliottwave-forecast.com/stock-market/unfi-favors-sideways-lower-rally-resumes/

 

[Elliottwave-Forecast]

Newmont Mining (ticker: NEM) is the world's largest gold mining company, based in Greenwood Village, Colorado, United States. The stock may have formed a significant low at 37.57 on November 2022 and started a new bullish cycle. This article looks at the Elliott Wave Outlook for the stock.

Newmont Monthly Elliott Wave Chart​

Monthly Elliott Wave Chart in Newmont Mining (NEM) above shows a bullish sequence as it broke above the previous peak wave ((I)) on September 1987 at 81.92. Wave ((II)) pullback has ended in 3 swing at 12.75 and stock resumes higher in a new impulsive structure within wave ((III)). Up from wave ((II)), wave (I) ended at 62.72 and pullback in wave (II) ended at 15.39. Then stock rallied higher in wave I of (III) at 86.37 and wave II of (III) ended at 37.45. Expect the stock to extend higher while pivot at 15.39 low remains intact.

Newmont Daily Elliott Wave Chart​

Daily Elliott Wave for Newmont Mining (NEM) above shows that the stock ended wave II pullback at 37.57. It has turned higher in wave III. Up from wave II, wave (1) ended at 55.41 and dips in wave (2) ended at 41.68. As far as pivot at 37.57 low stays intact, expect the stock to extend higher.

Source: https://elliottwave-forecast.com/stock-market/newmont-mining-nem-starts-new-bullish-cycle/

 

[Elliottwave-Forecast]

Hello Traders. In today’s article, we will look at the past performance of 4 Hour Elliott Wave chart of Bank of America ($BAC). The decline from 2.07.2023 peak unfolded as 5 swings and made a lower low on 3.24.2023 which created a bearish sequence in the 4H timeframe. Therefore, we knew that the structure in $BAC is incomplete to the downside & should see more downside in 3 or 7 swings against 2.07.2023 peak. So, we advised members to sell the bounce in 3 swings at the blue box area. We will explain the structure & forecast below:

$BAC 4H Elliott Wave Chart 4.16.2023:​

Here is the 4H Elliott Wave count from 4.16.2023. The decline from 2.07.2023 unfolded in a 5 wave impulse breaking below 10.13.2022 low creating a bearish sequence. We were calling for the bounce to fail in 3 swings where we like to sell it at the equal legs at $30.34 with a stop at $32.11.

$BAC Elliott Wave Chart 4.19.2023:​

Here is the 4.19.2023 4H update showing the move taking place as expected. The stock has reacted lower ending the cycle from 3.24.2023 low. It reached the 50% back from black ((b)) allowing any shorts to get risk free shortly after taking the position.

The market is dynamic and constantly changing. With that said, the overall market correlation is calling for a 7 swings correction to take place instead of 3 so we advised our members that the structure has changed. We like to sell the next blue box area in 7 swings when the opportunity presents itself.

Source: https://elliottwave-forecast.com/stock-market/bank-america-bac-reacts-lower-blue-box-area/

 

[Elliottwave-Forecast]

In this article we’re going to take a quick look at the Elliott Wave charts of GBPUSD , published in members area of the website. As our members know, we have been favoring the long side in the pair. We recommended members to avoid selling , while keep favoring the long side. Recently we got correction that has unfolded as Elliott Wave Double Three pattern. It has reached our buying zone and made rally toward new highs as expected. In the further text we are going to explain the Elliott Wave Forecast and trading strategy.

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

Elliott Wave Double Three Pattern

Double three is the common pattern in the market , also known as 7 swing structure. It’s a reliable pattern which is giving us good trading entries with clearly defined invalidation levels.
The picture below presents what Elliott Wave Double Three pattern looks like. It has (W),(X),(Y) labeling and 3,3,3 inner structure, which means all of these 3 legs are corrective sequences. Each (W) and (Y) are made of 3 swings , they’re having A,B,C structure in lower degree, or alternatively they can have W,X,Y labeling.

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GBPUSD Elliott Wave 1 Hour Chart 04.06.2023​

The pair is giving us wave ((iv)) pull back that is unfolding as Double Three pattern. At this stage we believe 5th swing is in progress,so missing 6th and 7th. We expect to get more short term weakness toward 1.2386-1.233 area which would be our next buying zone. We don’t recommend selling the pair against the main bullish trend. Strategy is waiting for the price to reach blue box- equal legs zone, before entering the long trades again. Once bounce reaches 50 Fibs against the (x) blue high , we will make long position risk free ( put SL at BE) and take partial profits. Invalidation for the long trades is break of 1.618 fib ext : 1.2330

Quick reminder:

Our charts are easy to trade and understand:
Red bearish stamp+ blue box = Selling Setup
Green bullish stamp+ blue box = Buying Setup
Charts with Black stamps are not tradable.

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

GBPUSD Elliott Wave 1 Hour Chart 04.14.2023​

GBPUSD made 7 swing down and reached buying zone at 1.2386-1.233 area( blue box) . The pair is giving us very good reaction from the buying zone. The price has already made a break toward new highs. So, members who took the long trade are enjoying profits now in a risk free positions.

Keep in mind that 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



Source: https://elliottwave-forecast.com/elliottwave/gbpusd-buying-dips-double-three/

 

[Elliottwave-Forecast]

Coca-Cola (NYSE: KO), a leading beverage company, recently reported better-than-expected earnings and revenue for the quarter. The strong financial results, demonstrate the company's resilience in the face of challenging economic conditions and highlight its ability to adapt to changing market dynamics. It leads to increased investor confidence and a surge in the company's stock price. As a result, investor confidence has increased, leading to a surge in Coca-Cola's stock price.

Let's take a look at the technical Daily chart for KO. The recent surge allowed the price to make new high above wave ((1)) peak $64.70 from December 2022. The recent surge in price for KO has created a new bullish sequence on the daily chart, originating from the October 2022 low. This suggests a move into potential price target in the equal legs area of $69-$71.

Nonetheless, in the short term, the price has entered a technical area between $64.97-$66.53, which may cause a corrective pullback. Given the bullish sequence, any pullback at this stage could present a potential opportunity to buy in 3, 7, or 11 swings against March 2023 low of $58.37.

At a later stage, the break above 2022 peak will be critical to confirm a weekly bullish sequence from 2020 low which will support the stock to the upside in the coming years into higher targets.

In conclusion, the recent bullish surge in KO's stock price is supported by technical analysis and positive earnings results. While a short-term corrective pullback may be possible, the overall outlook for KO is optimistic, with potential for further gains in the coming years. Investors should continue to monitor the stock for potential buying opportunities.

KO Elliott Wave Daily Chart​

Source: https://elliottwave-forecast.com/stock-market/coca-cola-ko-bullish-sequence/

 

[Elliottwave-Forecast]

Hello Traders, in this article we will go through how EURAUD reacted higher after reaching a blue box area. Here at Elliott Wave Forecast we have in place a system that allows us to measure an area in which we can expect a react to take place. We call it equal legs area or blue box area as you might have seen within our charts.

These areas provide us with at least an 85% chance of a minimum of 3 waves bounce or reaction to take place. Consequently, we can use these areas to enter in the market with a defined entry, Stop Loss and exit strategy.

The pair has been trading within a larger degree cycle since 08.25.2022. In the near term cycle it has ended wave 1 of (3) on 04.13.2023 and a 3 waves pullback was then expected. Once we had establish the first leg lower in ((w)) and then connector bounce ((x)) we presented to our members the equal legs area to buy from. Let's have a look on how we saw it during our Midday update on 04.17.2023.

EURAUD 1 Hour Midday update 04.17.2023​

As we can see we were expecting then the last leg lower within wave ((y)) of 2 to end within 1.62197 - 1.61048 equal legs area. From there we are expecting the pair to find support for wave 3 of (3).

Now let's see how it has reached the area and what is the latest update from 04.25.2023 Asia update.

EURAUD 1 hour Asia update 04.25.2023​

The pair has touched the equal legs area at 1.62182 and already reacted higher within wave ((i)) of 3 with one more high expected in (v) to end ((i)) before a 3 waves pullback in ((ii)) to follow. As a result now the trade should be set risk free after the reaction and letting it play out with the set target for wave 3 or short term traders can already take profit. Wave ((ii)) pullback should find support above 1.62182 for wave ((iii)) of 3 higher.

Source: https://elliottwave-forecast.com/forex/euraud-wave-2-found-buyers-at-blue-box-area/

 

[Elliottwave-Forecast]

In this technical blog, we will look at the past performance of the 4-hour Elliott Wave Charts of GBPCAD. In which, the rally from the 10 February 2023 low unfolded as an impulse sequence and showed a higher high sequence with a bullish sequence stamp. Therefore, we knew that the structure in GBPCAD is incomplete & should see another extension higher to complete the sequence. So, we advised members not to sell the pair & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

GBPCAD 4-Hour Elliott Wave Chart From 4.14.2023​

Here’s the 4hr Elliott wave Chart from the 4/14/2022 New York update. In which, the rally to 1.6866 high ended 5 waves from the 2/10/2023 low in wave (1) & made a pullback in wave (2). The internals of that pullback unfolded as Elliott wave double three correction where wave W ended at 1.6579 low. Then a bounce to 1.6835 high-ended wave X & started the next leg lower in wave Y towards 1.6547-1.6369 blue box area. From there, buyers were expected to appear looking for new highs ideally or for a 3-wave bounce minimum.

GBPCAD 4-Hour Latest Elliott Wave Chart From 4.03.2023​

This is the latest 4hr Elliott wave Chart from the 4/24/2023 update. In which the pair is showing a strong reaction higher taking place, right after ending the double correction within the blue box area. Allowed members to create a risk-free position shortly after taking the long position at the blue box area. Since then the pair has managed to make a new high above 1.6866 high confirming the next extension higher.

Source: https://elliottwave-forecast.com/forex/gbpcad-another-blue-box-offered-another-buying-opportunity/

 

[Elliottwave-Forecast]

L'Oréal S.A. is the world largest cosmetics and beauty company. Headquartered in Clichy, France, the field of activities concentrates on skin care, hair color, perfume, make-up, hair care, sun protection etc. L’Oréal is a part of Euro Stoxx 50 (SX5E) and CAC40 indices. Investors can trade it under the ticker $OR at Euronext Paris.

In the initial article from July 2020, we have forecasted more strength against 195.70 lows. We were right. As a matter of fact, we see l'Oréal trading at 432 which means that $OR prices have doubled within less than 3 years. Currently, we expect short term strength to continue. However, there are signs for a larger correction to be happening soon. In the current blog, we discuss the wave structure, cycles and the next buying opportunities in l'Oréal.

L'Oréal Monthly Elliott Wave Analysis 04.26.2023​

The monthly chart below shows l'Oréal stock $OR listed at Euronext. From the all-time lows, first, the stock price has developed a cycle higher in wave (I) of a super cycle degree. It is clearly an impulsive move consisting of 5 subwaves. Thereafter, a correction lower in wave (II) has unfolded as an Elliott Wave expanded flat pattern. It is a 3-3-5 pattern which has printed an important bottom on February 2009 at 46.0.

From the February 2009 lows, l’Oréal has accomplished an impressive rally. The rise towards December 2021 peak shows an extension of more than 2.618 multiples in relation to the length of the wave (I). Without any doubt, it qualifies the cycle to become the wave (III). It has ended at 433.65. From there, a pullback in wave (IV) has unfolded as a triangle. A thrust in wave (V) to the upside might become the final push. The target is 465.45-516.74 area. As a matter of fact, soon $OR will show fully developed 5 waves from the all-time lows. There, the entire cycle in black wave ((I)) might end and a larger pullback in black wave ((II)) should correct against the all-time lows. Only then, a new bullish cycle in black wave ((III)) can start.

​

L'Oréal Daily Elliott Wave Analysis 04.26.2023​

The weekly chart below shows in more detail the correction of wave (III) within a triangle in wave (IV) and a thrust to the upside in blue wave (V). From December 2021 highs at 433.65, a zigzag lower in red wave a has printed a bottom in June 2022 at 300.45. Then a bounce in red wave b has set a high in July 2022 at 373.00. From there, waves c-d-e of the triangle structure show a converging price action. RSI readings support the triangle idea. It is the preferred view, that wave (IV) has ended in December 2022 at 330.00 lows. From there, thrust in blue wave (V) has been confirmed by breaking above December 2021 high. Currently, red waves I-II have ended, while above 365.80, wave III is expected to extend and can reach higher within 429.32-468.72 area and go even beyond.

Short term traders can be still looking to buy pullbacks within wave III against 365.80 lows, expecting wave III to extend. Also, pullback in wave IV should find support for more upside in wave V. The target will be 465.45-516.74 area. For investors, on the other hand, it is time to become cautious. Indeed, the cycle in black wave ((I)) looks mature and a correction against all-time lows should happen soon. Therefore, investors do better to wait for a larger pullback in 3, 7, 11 swings against all-time lows. Monthly chart shows the idea of buying lower in 3 swings.



Source: https://elliottwave-forecast.com/stock-market/loreal-remains-supported/

 

[Elliottwave-Forecast]

Hello fellow traders. In this technical article we’re going to take a quick look at the Elliott Wave charts of Microsoft (MSFT) stock. As our members know, the stock is trading within the cycle from the November 2022 low. We have been calling for the rally in the stock after 3 waves pull back. Our team recommended members to avoid selling MSFT stock, while keep favoring the long side. In the further text we are going to explain the Elliott Wave Forecast.

Microsoft (MSFT) Elliott Wave 1 Hour Chart 4.23.2023​

Current view suggests the stock is doing wave (4) pull back, correcting the cycle from the March low. At the moment structure of the pull back looks incomplete, consequently we were calling for more downside toward 280.74-275.62 area. We don’t recommend selling it and prefer the long side. The stock is expected to find buyers in 3,7,11 swings. We expect to see at least 3 waves bounce from the blue box area or further rally toward new highs ideally.

Microsoft (MSFT) Elliott Wave 1 Hour Chart 4.23.2023​

Eventually the stock made decline toward blue box zone- buyers area. Pull back reached our target zone at 280.74-275.62 area . MSFT found buyers and we got very good reaction from there. Rally made break toward new highs confirming next leg up is in progress. The stock is expected to keep finding buyers as far as pivot at 275.17 low holds.

Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts with target levels 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

New to Elliott Wave ? Check out our Free Elliott Wave Educational Web Page and download our Free Elliott Wave Book.



Source: https://elliottwave-forecast.com/stock-market/microsoft-msft-blue-box-area/

 

[Elliottwave-Forecast]

With a market capitalization of over $200 billion, PepsiCo (NASDAQ: PEP) is a global leader in the food and beverage industry. It has recently broken into new all-time highs, indicating a potentially bullish outlook for the stock. Despite ongoing market volatility and changing consumer preferences, the company's strong revenue and profits suggest a solid business model with promising growth potential. With the stock's recent surge, investors may want to consider the mid-term movement of the stock to take advantage of potential buying opportunities.

The recent surge in PEP's price, surpassing the peak of December 2022, successfully erased the RSI divergence in the daily charts. This event is crucial, as it indicates that the cycle from March 2020 will continue and confirms that the wave (3) cycle from March 2022 is still in progress.

The rally from March 2022 low unfolded as a leading diagonal in wave (1) at $186.84, followed by a pullback in wave (2) ended at $167.05. Ideally, the move higher in wave (3) should target the 100% Fibonacci extension area at $200.53, followed by a potential 3-wave pullback before resuming the rally. Additionally, the 123.6% - 161.8% Fibonacci extension levels, located at $208 - $221, may come into play at a later stage of the cycle.

In conclusion, PEP's Elliott Wave patterns suggest that the stock is in a bullish sequence from March 2022 low, with the wave (3) in progress. Any pullbacks in 3, 7, or 11 swings should be seen as potential buying opportunities, as long as the stock remains supported above the wave (2) low of $167.05.

PEP Elliott Wave Daily Chart​

Source: https://elliottwave-forecast.com/stock-market/pepsico-pep-gains-momentum/

 

[Elliottwave-Forecast]

The Elliott Wave Principle is generally considered to be a subjective tool for technical analysis. This is because the interpretation of the wave patterns and counts relies on the experience and analysis of the price movements.

The Principle involves identifying repetitive patterns in price movements and using those patterns to make predictions about future price action. However, while there are guidelines and rules that can be used to identify this patterns, there is not a unique approach and different traders can come up with different wave counts and interpretations of a same chart.

Is there a way to change that subjective to objective?​

There are methods that traders can use to try to make their wave counts more objective. Here are some approaches:

1. Use clear and consistent guidelines. One way to make the wave counts more objective is to use clear and consistent guidelines for identifying the waves. For example, traders can use specific rules for wave length, wave amplitude, and wave duration, which can help to reduce subjectivity.
2. Validate the wave counts with multiple indicators. Another way to make wave counts more objective is to validate them with multiple indicators. This can include technical indicators such as moving averages, relative strength index, stochastic, etc. which can help to confirm the direction and strength of the trend.
3. Use a systematic approach. To make wave counts more objective, traders can use a systematic approach to analyzing the charts. This can include breaking down the chart into smaller time frames and looking for patterns and trends that are consistent across multiple time frames. To determinate sequences, cycles, market dynamics, correlations, etc., also is a good support to make a objective count.
4. Backtest the wave counts. Another way to make wave counts more objective is to backtest them on historical data. This can help to identify which wave counts have been most accurate in the past and can give traders a better idea of which wave patterns to look for in the future.

While these approaches can help to make the Elliott Wave Principle more objective, it is important to remember that there is always a degree of subjectivity in technical analysis. Most technical analysis tools involve some degree of subjectivity. Ultimately, it is up to the individual trader to use their judgment and experience to interpret the charts and make trading decisions.

How is the must common way to trade using The Elliott Wave Principle?​

The most common way to trade using the Elliott Wave Principle is to identify and trade with the trend, which is determined by the direction of the wave patterns.

Traders who use Elliott Wave typically start by identifying the major trend in the market by looking for larger timeframes. They then look for corrective waves that move against the trend. These corrections can be used as potential entry points for trades in the direction of the trend. We have created the Right Side System to trade in favor of the trend. Read More about our Right Side System.

For example, This is the gold weekly chart updated from April 15th. XAUUSD is bullish and traders may look for corrective waves that move downward, such as ABC or WXY corrections. Once the correction is over, traders may enter a long position with the expectation that the trend resumes. In the chart, we can see how gold reacted higher from the blue box. The market completed a double correction structure as wave IV and rally in favor of the trend. We have developed the blue box area where we expect a trend continuation or a contrarian reaction of the market. Read more about Blue Boxes Trading.

Traders may also use other technical indicators, such as support, resistance, invalidation levels and Fibonacci tools. These will help to confirm their Elliott Wave counts and to identify potential entry and exit points for trades. Traders who use this approach often have their own unique methods and strategies. They can take time and experience to become proficient in its use.

Source: https://elliottwave-forecast.com/elliottwave/elliott-wave-objective-subjective/