Elliott Wave Analysis by EWF

Elliottwave-Forecast

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Swiss Franc strengthens on Tuesday, January 14 2020, after the US Treasury Department added Switzerland to its watch list for countries labelled as “currency manipulator” alongside other countries such as Germany, Ireland, Italy, Japan, Malaysia, Singapore, South Korea and Vietnam. This is not the first time Switzerland has been added to the watch list. In 2016, US added the country to the list after it abandoned its Euro peg. Two years later, in 2018, the US Treasury Department removed it from the list.

Swiss Franc has long been a safe haven for many investors when markets turn nervous. The Swiss economy has a large current account surplus that strengthens its currency. It has a very low debt-to-GDP ratio. In the past, Swiss National Bank (SNB) committed to capping strength in the currency through a combination of euro-buying market interventions and by holding benchmark interest rate at minus 0.75%. The inclusion in the watch list now likely will discourage SNB from intervening to try and limit Swiss Franc's strength in the forex market.

USDCHF Shows Bearish Sequence from April 2019 High


The Daily Chart of USDCHF above shows the pair has an incomplete bearish sequence from April 26, 2018 high favoring further downside. Wave A of (Y) remains in progress and could end soon. This should be followed by a bounce in wave B before resuming lower in wave C targeting the 100% - 161.8% extension between 0.9152-0.9488 area.

USDCHF 1.9.2020 1 Hour Asia Elliott Wave Update


The chart from 1.9.2020 Asia update showed that USDCHF has ended the cycle down from October 2019 high. Wave W ended at 0.9640 low. The pair then bounced from that level to correct the cycle down. Wave (a) ended at 0.9744 and wave (b) ended at 0.9658. The 100% - 161.8% extension of wave (a) - (b) is between 0.9760 - 0.9825. This area was highlighted with a blue box. The blue box area is the area where we expect sellers to appear for an extension lower or 3 waves pullback at least.

USDCHF 1.16.2020 1 Hour Asia Elliott Wave Update


In subsequent update from 1.16.2020 above, the pair reached the blue box area, and it not only pullback in 3 waves but extends lower. We adjusted the count and now it ended wave c of (iv) at 0.9763 high. From there, the pair has broken below wave (iii) low and resumed its decline. Members who sold from the blue box area playing the hedging now have a risk free position and in profit. Near term, as far as 0.9763 pivot stays intact, USDCHF can still extend lower targeting the 100% extension in the Daily chart.
 

Elliottwave-Forecast

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Russell 2000 (RTY_F) shows a 5 waves impulse Elliott Wave structure from August 26, 2019 low. In the 45 minutes chart below, we can see wave (4) of the impulse structure ended at 1627.3. The Index has resumed higher in wave 5 with subdivision of another 5 waves in lesser degree. Up from 1627.3, wave ((i)) ended at 1676.6 and wave ((ii)) pullback ended at 1652. Wave ((iii)) of 5 now remains in progress and shows an extension. Up from 1652, wave (i) of ((iii)) ended at 1691.2 and pullback in wave (ii) of ((iii)) ended at 1676.41.

Near term, while dips remain above 1676.41, expect the Index to continue higher. Possible target of wave ((iii)) is 161.8% Fibonacci extension of wave ((i)) which comes at 1732.04. Afterwards, Index should pullback in wave ((iv)) and then extend higher again in wave ((v)) of 5 before ending cycle from August 26, 2019 low. We don't like selling the Index and expect short term dips to continue finding support in 3, 7, or 11 swing against 1676.41 pivot low in the first degree and against January 8, 2020 low (1627.3) in second degree.

Russell (RTY_F) 1 Hour Elliott Wave Chart
Elliott Wave View: Russell Impulsive Rally In Progress
 

Elliottwave-Forecast

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In today’s article, we’ll be taking a look at the current Elliott Wave Structure for the world’s largest retailer Walmart (NYSE: WMT).

Since August 2019, WMT rallied within an impulsive 5 waves advance which took the stock to new all time highs before the cycle ends on November at $125.69. Down from there, it started a correcting lower that unfolded in 3 waves move as a Zigzag Structure which reached the equal legs area at $113.7 - $108.6. The blue boxes presented in the chart is a High-frequency area where the instrument is likely to end cycle and make a turn in favor of the main trend which is in the case of Walmart to the upside. Therefore, we are expecting the stock to start another bullish cycle aiming for a break to new all time highs with a target round $134 - $140 area.

Walmart WMT 4H Chart ( Zigzag Structure )
Walmart WMT 4H 01.15.2020

However, if Walmart only bounces in 3 waves from the blue box area and fails to break above November 2019 peak, then the stock will have the possibility of doing a larger correction lower which can unfold as a 7 swings move within a Double Three structure. After ending the correction, the stock is still expected to find buyers again as the main daily cycle from 2015 & 2018 lows remain in progress showing an incomplete sequence. Consequently, the stock should remain bullish and keep finding buyers after 3 , 7 or 11 swing pullbacks.

Walmart WMT 4H Chart ( Double Three Structure )
Walmart WMT 4H Alt 01.15.2020
 

Elliottwave-Forecast

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NZDUSD short term Elliott Wave view suggests the decline from 12.31.2019 is unfolding as a zigzag Elliott Wave structure. Down from 12.31.2019 high (0.6755), wave 1 ended at 0.6717, and wave 2 bounce ended at 0.6739. Pair then resumed lower in wave 3 towards 0.6623 with subdivision of another 5 waves of lesser degree. Wave 4 bounce ended at 0.6672. The final wave 5 of (A) ended at 0.6596. Wave (B) bounce is proposed complete at 0.666 with internal subdivision as an expanded Flat.

Wave A of (B) ended at 0.665, wave B of (B) ended at 0.658, and wave C of (B) is complete at 0.666. Pair has turned lower in wave (C) but it needs to break below 0.658 to confirm the bearish sequence in wave (C) and rule out a double correction. Near term, wave 1 of (C) ended at 0.6588. While wave 2 of (C) rally fails below 0.666, expect pair to resume lower again within wave (C). Potential wave (C) target lower is 100% of wave (A)-(B) which comes at 0.646 - 0.65. As far as pivot at 0.666 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside.

NZDUSD 1 Hour Elliott Wave Chart
Elliott Wave View: NZDUSD Zigzag Correction in Play
 

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A few months ago, we were expecting Microsoft to trade into the $157.00-$172.00 area. We observed a very technical impulse from all-time lows where wave (III) is ending. We explained the whole idea in the following blog Microsoft Elliott Wave View: Why It Will Be Supported Into $157.78-$172.77 Area. The area has now been reached, but the wave structure from 12.04.2018 low is very constructive to the buyers. The Elliott Wave Theory impulse structure consists of five waves. Three of the 5 waves are with the trend and two of the 5 waves are against the trend. The following chart illustrates the idea:



Each impulse needs to have five waves in a sequence of 5-9-13-17-21-25. This is very important to call extensions because most of the time one of the three sub impulses will extend in what is called nesting. The Nest is sequences of 1-2-1-2, and that is when the number jumps from 5 to 9 or even higher depending on the number of the nest. The Following chart shows a nest extension in different part of the 5 waves impulse.


Looking at Microsoft from 12.04.2018 low, the stock shows an incomplete sequence. We are afraid that a nest within wave ((3)) is taking place. At this moment, we believe the stock is ending wave ((iii)) of 3, which should be the strong wave within the whole cycle. The following chart shows where we are

Microsoft 4 hour Elliott Wave Chart
Microsoft ($MSFT): Even When In Wave V, More Upside Still To Come

The above chart suggests Microsoft is within wave ((3)) rally. If we count the number of swings since 08.05.2019 low, the stock has done eleven swings. This is not an impulse sequence, thus more upside is likely to come. At this moment, a series of four-fives will happen before ending the cycle from 08.5.2019 low, then a big wave ((4)) will happen. Many wavers tend to overlook the nesting and swing counts, but it is very important to trade the right side.

Another indication that this is the right count is the correction in World Indices which show the same low like Microsoft. Many of World Indices remain incomplete and call for more upside, which should also drive Microsoft into new all-time highs. As we have explained, there is no reason to sell the stock, either picking a top or into pullback. On the other hand, the wave structure suggests the stock to remain supported and it should extend higher and peak sometimes in 2020.
 

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ConocoPhillips (NYSE: COP) is an American multinational energy corporation that was created through the merger of American oil companies Conoco and Phillips Petroleum Company on August 30, 2002.

Since February 2016, COP rallied higher within an impulsive 5 waves advance for almost 3 years before ending that cycle in October 2018. Then the stock turned lower into a 7 swings move within a Double Three structure which ended on August 2019. Since then the stock started bouncing higher and ideally the pullbacks will remain supported above $50 low for the stock to resume the rally within the daily cycle higher aiming for a break above 2018 peak which will open a bullish sequence with a minimum target at equal legs area $99 - $110.

The overall technical picture for COP is turning bullish but until it takes 2018 peak the stock will still have the risk of a potential double correction. With Oil expectation to trade higher toward $100, we also expect the related stocks to follow the same path which will allow COP to remain supported in the coming few years.

ConocoPhillips COP 1.20.2020
 

Elliottwave-Forecast

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Hello fellow traders. Another instrument that we have been trading lately is EURUSD. In this technical blog we’re going to take a quick look at the Elliott Wave charts of EURUSD, published in members area of the website. EURUSD has incomplete bearish sequences in the cycle from the 12/311 peak. The pair is ideally targeting 1.1019 area . Consequently, we advised members to avoid buying the pair and keep on selling the rallies 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.

EURUSD 1 Hour Elliott Wave Analysis 1.21.2020
Cycle from the December 31st peak looks incomplete now, calling for further decline in the pair. Break of 01/10 low made EURUSD bearish against the 1.1172 pivot. Current bounce looks incomplete at the moment as we got only 5 waves up from the lows, which suggests we could have ended only first leg of Zig Zag pattern. Although we expect another leg up wave (c) of ((b)), we don't recommend buying the pair. Strategy is selling the pair in 3,7,11 swings against the 1.1172 high. At the marked blue box: 1.11083-1.11236 area we would like to be sellers , expecting to get decline toward new lows or 3 waves pull back at least. Invalidation of the trade would be break above 1.618 fib extension: 1.11236. 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.

EURUSD

EURUSD 1 Hour Elliott Wave Analysis 1.21.2020
Eventually , EURUSD gave us proposed leg up toward blue box. It found sellers right at the blue box area : 1.11083-1.11236 and gave us decline as expected. We got new short term low, confirming next leg down is already in progress. Members who sold the pair should be already risk free. Alternatively if we get strong bounce and ((b)) high gets broken, we can be doing irregular flat in ((b)), but the pair would remain bearish against in short term as far as 1.1172 pivot holds.

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.

EURUSD
 

Elliottwave-Forecast

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EURUSD short term Elliott Wave view suggests the decline from 1.6.2020 high is unfolding as a double three Elliott Wave structure. Down from January 6 high, wave ((w)) ended at 1.1132 and bounce in wave ((x)) ended at 1.1168. Pair extended the decline to 1.1084 which ended wave ((y)). This decline also ended wave (W) in larger degree. Pair then bounced as a zigzag within wave (X). Wave A of (X) ended at 1.1147, wave B of (X) ended at 1.1103, and wave C of (X) ended at 1.117.

After ending wave (X), pair resumed lower and it has broken below wave (W) at 1.1084. Pair now shows incomplete sequence from 1.6.2020 high suggesting further downside is likely. Down from wave (X) high at 1.117, wave ((a)) ended at 1.1075 as a 5 waves impulse and wave ((b)) bounce ended at 1.1118. Near term, while bounce stays below 1.117, expect pair to extend lower. Rally thus should see sellers in the sequence of 3, 7, or 11 swing as far as pivot at 1.117 high stays intact. Potential target lower is 100 - 123.6% Fibonacci extension from 1.6.2020 high which comes at 1.102 - 1.105.

EURUSD 1 Hour Elliott Wave Chart
Elliott Wave View: EURUSD Can See Further Weakness
 

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Oil has extended lower and short term Elliott Wave view suggests the decline from 1.8.2020 high is unfolding as a zigzag Elliott Wave structure. Down from January 8 high, wave A ended at 57.36 as a 5 waves impulsive structure. Bounce in wave B ended at 59.73 as a zigzag structure. Up from 57.36, wave ((a)) of B ended at 58.98, wave ((b)) of B ended at 58.27, and wave ((c)) of B ended at 59.73.

Oil then extended lower and broke below wave A at 57.36, suggesting the next leg lower in wave C has started. Wave C subdivides in a 5 waves impulsive structure. Down from wave B at 59.73, wave ((i)) ended at 58.64 and wave ((ii)) ended at 58.98. Wave ((iii)) of C remains in progress and nesting with 5 sub waves extension. Near term, expect a few more lows to complete the 5 waves structure within wave C. The nearest potential target to the downside is 61.8 - 76.4% of A-B which comes at $53.2 - $54.4. Near term, expect any rally to fail in the sequence of 3, 7, or 11 swing for more downside. This view remains valid far as pivot at 59.73 high stays intact.

Oil 1 Hour Elliott Wave Chart
Elliott Wave View: Oil Downside Target
 

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Boeing ticker symbol: $BA is showing an incomplete sequence from March 1, 2019 peak favoring more downside towards $275-$248 target area to the downside. In the chart below, the stock is showing an overlapping price action from September 25, 2019 peak. With each leg down showing sub-division of 3 waves corrective structure. Thus suggesting that the cycle degree y leg lower can be taking place as a double three structure. Therefore, we are taking a more aggressive view by calling wave ((W)) ended at $320.21 low. Wave ((X)) bounce ended at $343.73 high. While wave ((Y)) is in progress as a lesser degree Elliott wave zigzag structure.

Near-term, while bounces fail below $343.73 high the stock is expected to see another push lower towards $299.79-$289.25 area. To end the wave (A) lower in 5 wave structure. Then the stock is expected to do a bounce in wave (B) to correct the cycle from January 7, 2020 peak ( $343.73) in 3 or 7 swings. Before more downside towards $275- $248 area can resume again. We don't recommend buying the stock at this stage. And prefer selling the bounces in 3 or 7 swings at the extreme areas as far as the pivot from $343.73 high stays intact.

Alternatively, if the pivot from $343.73 high gives up during the next bounce. Then, there's a possibility that stock could do a bigger bounce against September 25, 2019 peak. In which case, the decline from September 25, 2019 peak to the lows would become 5 waves Leading diagonal structure in wave ((A)) lower. And, we may do a bigger wave ((B)) bounce in 7 or 11 swings before resuming the ((C)) leg lower. However, in any case, more downside is expected to take place either against $343.73 high or against $391 high seen on September 25, 2019 peak.

Boeing 4 Hour Elliott Wave Chart
Boeing Elliott Wave View: Biggest Pullback Taking Place
 

Elliottwave-Forecast

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In this blog, we are going to take a quick look at the Elliottwave chart of NZDJPY. The chart from 1.22.2020 New York update showed that NZDJPY ended wave 4 at 71.234 low. The pair then extended higher in wave ((i)) of 5. Wave ((i)) ended at 73.343 high. From there the pair is proposed to be doing a 3 waves pullback in wave ((ii)). Wave (a) of ((ii)) ended at 72.489 low and wave (b) ended at 72.989 high. Afterwards, we expect the pair to extend lower in 5 waves to complete wave (c). The 100%-161.8% Fibonacci extension of (a) - (b) where wave (c) can end is between 71.617-72.146 area, highlighted with a blue box. The blue box area is the area where we expect buyers to appear for an extension higher or 3 waves bounce at least.

NZDJPY 1.22.2020 1 Hour New York Elliott Wave Update


The chart below from 1.24.2020 London update shows that the count was adjusted. Instead of ending wave ((i)), the high at 73.343 is proposed to be the ending of wave X. Wave (a) - (b) was also adjusted to (w) - (x). Nonetheless, the 100%-161.8% Fibonacci extension of wave (w) - (x) remains the same between 71.617-72.146 area. We are still expecting the pair to react from the blue box area for a 3 waves bounce at least. The pair reached the blue box area and ended wave (y) at 71.899 low. It has since bounced higher from the blue box area and allowed members who bought at that area a risk free position. Wave (a) of ((x)) ended at 72.673 high. While above 71.899 low, the pair can still extend higher after a pullback in wave (b) to complete wave ((x)).

NZDJPY 1.24.2020 1 Hour London Elliott Wave Update
 

Elliottwave-Forecast

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In this technical blog we’re going to take a quick look at the Elliott Wave charts of USDX, published in members area of the website. As our members know USDX has incomplete bullish sequences in the cycle from the December 31. low. Consequently, we advised members to avoid selling it and keep on buying the dips in the sequences of 3,7,or 11 swings. In further text we’re going to explain Elliott Wave Forecast and Trading strategy.

USDX 1 Hour Elliott Wave Analysis 1.21.2020
Break of 01/10 peak made USDX bullish against the 97.081 low. Cycle from the December 31st low is showing higher high sequences , calling for further rally. Current short term view suggests USDX is giving us pull back against the 97.08 low. Pull back looks incomplete at the moment. Although we expect another leg down - wave (c) of ((b)), we don’t recommend selling USDX against the main trend. Strategy is buying USDX in 3,7,11 swings against the 97.08 low. At the marked blue box: 97.47-97.37 area we would like to be buyers for rally toward new highs or 3 waves bounce at least. Invalidation of the trade would be break below 1.618 fib extension:97.37.

USDX

USDX 1 Hour Elliott Wave Analysis 1.22.2020
USDX gave us proposed leg down (c) of ((b)) . The price found buyers right at the blue box area : 97.47-97.37. We are calling wave ((b))) blue pull back completed at 97.39 low. However need to see break above 01/20 peak to confirm next leg up is in progress. We already got decent bounce from the blue box. As a result , members who entered long trades should be already risk free.

USDX

USDX 1 Hour Elliott Wave Analysis 1.24.2020
In the meantime 97.39 low held nicely during the short term ((ii)) blue pull back and we got break above 01/20 peak. Current view suggests USDX can be ending cycle from the 97.083 low as wave W red. We can be getting X red pull back that should ideally find buyers again in 3,7,11 swings as far as pivot at 97.083 low holds.

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.

USDX

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Elliottwave-Forecast

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In this blog, we are going to take a quick look at the Elliottwave chart of Corn (ZC_F). The chart from 1.16.2020 New York update showed that Corn was doing a pullback in wave (2). Wave A of (2) ended at 376'4 low. Wave B of (2) ended at 390'5 high. From there, we expect the pair to extend lower in 5 waves to complete wave C of (2). The 100%-161.8% Fibonacci extension of A – B where wave C can end is between 371'2 - 375 area, highlighted with a blue box. The blue box area is the area where we expect buyers to appear for an extension higher or 3 waves bounce at least.

ZC_F 1.16.2020 1 Hour New York Elliott Wave Update
ZC_F 1 Hour 1.16.2020 NY Update

The chart below from 1.19.2020 weekend update shows that wave (2) ended at 375'2, which is the 100% extension area. Afterwards, the price bounced higher, in which it looks like an impulsive move up. This allowed members who bought from the blue box area a risk free trade.

ZC_F 1.19.2020 1 Hour Weekend Elliott Wave Update
ZC_F 1H 1.19.20 weekend update

The moves up in wave 1 as shown in the chart below from 1.26.2020 update appears to end at 394 high. Corn is now expected to do a pullback in wave 2. Wave ((a)) of 2 ended at 388 low and wave ((b)) ended at 391'4 high. The 100%-161.8% Fibonacci extension of wave ((a))-((b)) is between 381'7 - 385'5 area. We expect to see a 3 waves bounce at least or even an extension higher from there. Thus, this area should provides an opportunity to buy the dip again. As long as the low of wave (2) at 375'2 stays intact, corn can still extend higher after the pullback in wave 2.

ZC_F 1.26.2020 1 Hour Weekend Elliott Wave Update
ZC_F 1H Weekend 1.26.20
 

Elliottwave-Forecast

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Short term Elliott wave view in CADJPY suggests that the rally from August 25, 2019 low ended 5 waves as a Leading diagonal structure at 84.57 high. Down from there, the pair is correcting that cycle in wave (B) pullback. The internals of that pullback is unfolding as a zigzag structure where wave ((i)) ended at 83.89 low. Wave ((ii)) ended at 84.35 high, wave ((iii)) ended at 83.58 low, wave ((iv)) ended at 83.92 high, wave ((v)) ended at 83.05 low & thus completed wave A lower.

Up from there, wave B bounce has ended at 83.56 high. Below from there, wave C remains in progress as another 5 wave structure. Looking to extend lower towards 82.02-81.05 100%-161.8% Fibonacci extension area of A-B. And should provide an opportunity for bulls to take control again looking for (C) leg higher ideally or for 3 wave reaction higher at least. We prefer a more intraday weakness against 83.56 high. Therefore, bounces should get fail in 3, 7 or 11 swings. While swing traders can be waiting to appear again as soon as the price reaches the 82.02-81.05 area to the downside to going long the pair again.

CADJPY 1 Hour Elliott Wave Chart
CADJPY Elliott Wave View: Pullback Another Opportunity To Buy?
 

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USDCHF found a low on 1.16.2020 (0.9610) and has been bouncing since then. Initial rally from 0.9610 to 0.9729 was in 3 waves which was followed by a pull back and pair has since then made a new high above 0.9729 and today, we would look at the structure of the bounce from 0.9610 and how this bounce fits into the bearish 5 swings incomplete sequence down from April 2019 peak that we mentioned in this article. Before we proceed to take a look at the structure of the bounce up from 0.9610 low, let's revisit sequence lower from April 2019 peak.

USDCHF Daily chart showing 5 swings Incomplete Elliott Wave Sequence
Chart below shows the decline from April 2019 to June 2019 peak was in 3 swings. This was followed by a FLAT correction higher to October 2019 peak. Since then pair has dropped to a new low below June 2019 low which makes it 5 swings incomplete sequence down from April 2019 peak with 5th swing ended in January 2020 at 0.9610. Pair is currently bouncing in 6th swing and as the decline from April 2019 peak is overlapping and hence not impulsive, expectations are for the current bounce to prove to be swing number 6 and produce another drop as swing 7 toward 0.9487 - 0.9359 to complete the swing sequence down from April 2019 peak. Once 7 swings sequence has completed, pair should see a larger 3 waves bounce at least.



USDCHF Daily chart Elliott wave sequence down from April 2019 peak

USDCHF Bounce from January 16, 2020 low
In the chart below we can see that the bounce from January 16, 2020 low is unfolding as a double three Elliott wave structure where the rally from 0.9610 to 0.9729 was in 3 waves i.e. wave ((w)). This was followed by a pull back in 3 waves to 0.9666 and since then pair has already made a new high above 0.9729 which makes it 5 swings up from 0.9610 low. Thus, as dips stay above 0.9666 low, pair is expected to make another push higher to complete 7 swings up from 0.9610 low. 0.9786 - 0.9860 is the ideal area to complete 7 swings up from 0.9610 low. Sellers should be waiting in this area and resume the decline for a new low below 0.9610 low or produce 3 waves pull back and do 11 swings higher or do a larger double three correction to the upside. Since the sequence is bearish so far as October 2019 (1.0029) peak remains intact, sellers should remain in control in 7 or 11 swings.

USDCHF bounce from January 16, 2020 low
 

Elliottwave-Forecast

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Short term Elliott wave view in Tesla (ticker: TSLA) suggests the rally to $594.5 ended wave (3). The stock then corrected in wave (4) and the pullback ended at $538.66. The structure of wave (4) unfolded as a double three Elliott Wave structure. Down from 594.5, wave W ended at 555.55 as a zigzag where wave ((a)) of W ended at 559.1, wave ((b)) of W ended at 574, and wave ((c)) of W ended at 555.55.

Wave X bounce ended at 582 and wave Y of (4) ended at 538.66. Structure of wave Y unfolded also as a zigzag where wave ((a)) of Y ended at 561.76, wave ((b)) of Y ended at 579.8, and wave ((c)) of Y ended at 538.66. Tesla has resumed higher in wave (5) with the internal unfolding as an impulsive structure. Up from 538.66, wave 1 of (5) ended at 576.81. While wave 2 pullback stays above 538.66 in the first degree, expect the stock to extend higher. If the stock breaks below 538.66, then it's doing a double correction and buyers should appear at the next 100% - 123.6% extreme area in 7 swing.

Tesla (TSLA) 1 Hour Elliott Wave Chart
Elliott Wave View: Tesla Ended Short Term Correction
 

Elliottwave-Forecast

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Best Buy is trading within a very Technical Elliott Wave structure with well-defined cycles. Currently, it is showing a five waves advance, but also it has an incomplete sequence. The Five waves structure runs in a sequence of 5-9-13, which comes with a subdivision of three advances in five waves and two pullbacks in three waves. The following chart explains the structure:
Best Buy(BBY): The Instrument is ending wave III of (III)


In Elliott’s model, market prices alternate between an impulsive, or motive phase, and a corrective phase on all time scales of the trend. Impulses are always subdivided into a set of 5 lower-degree waves, alternating again between motive and corrective character, so that waves 1, 3, and 5 are impulses, and waves 2 and 4 are smaller retraces of waves 1 and 3.

Corrective waves subdivide into 3 smaller-degree waves, denoted as ABC. Corrective waves start with a five-wave counter-trend impulse (wave A), a retrace (wave B), and another impulse (wave C). The 3 waves A, B, and C make up a larger degree corrective wave (2).In a bear market, the dominant trend is downward, so the pattern is reversed—five waves down and three up.

Best Buy is showing a classic advance with the particular difference of a nest since the all-time low. A nest is a series of motive waves that break with the trend most of the time within the powerful wave 3. Out of the three impulses, one of them is always extended which comes with the nest. The following chart shows a nest in the Elliott wave Theory which is exactly what Best Buy did the same the lows at all-time lows.

Best Buy(BBY): The Instrument is ending wave III of (III)

Best Buy rally in three advances of five waves since all-time lows until the peak at 11.2013. Then the instrument pullback and finally managed to see a break to the upside confirming the Impulse or motive advance. Which also supported when the instrument pullback into the 12.2018 low, without overlapping the 11.2013. One of the rules in the Theory is that there must not overlap between wave 1 and 3, then the instrument rally into new highs and created a clear five waves advance since lows at 12.2012. The advance is very clear and Technical and will provide a more long trading opportunity for years to come.

Best Buy Weekly Elliott Wave Chart
Best Buy(BBY): The Instrument is ending wave III of (III)

Best Buy Daily Elliott Wave Chart
Best Buy(BBY): The Instrument is ending wave III of (III)


shows the reaction since 12.2018, which is a complete agreement with most of the World Indices, the reaction higher is also impulse and it is not complete yet. We still need to resolve a series of 4-5 since the low, like most World Indices. In the end, understand the Elliott Wave Theory is a beautiful thing, but adding other tools like correlations, sequences, cycles helps to confirm the idea more.
 

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In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of BABA, which we presented to members at elliottwave-forecast.com. In which, the rally from October 2019 lows, showed the higher highs in an impulse sequence favored more strength to take place. Also, the right side tag pointed higher & favored more strength against $197.14 low seen on 12/10/2019. Therefore, we advised our members to buy the dips in BABA in 3, 7 or 11 swings at the blue box areas. We will explain the structure & forecast below:

BABA 1 Hour Elliott Wave Chart
BABA Elliott Wave: Buying The Wave Four Pullback

BABA 1 Hour Elliott Wave Chart from 12/30/2019 Pre-Market update in which the stock is showing an impulse rally taking place where wave ((i)) ended at $203.43 high. Wave ((ii)) ended at $197.14 low, wave ((iii)) ended at $218.70 high and wave ((iv)) pullback is taking place. It's important to note that in an impulse structure wave ((i)), ((iii)) & ((v)) always shows the sub-division of lesser degree 5 wave structure. While wave ((ii)) & ((iv)) can be any corrective sequence i.e such as zigzag, double three etc.

$BABA 1 Hour Elliott Wave Chart
BABA Elliott Wave: Buying The Wave Four Pullback

BABA 1 Hour Elliott Wave Chart from 12/30/2019 update, in which the pullback from the peak unfolded as zigzag structure. And managed to reach the blue box our entry area at $211.73-$209.13 100%-161.8% Fibonacci extension area of lesser degree wave (a)-(b). Thus provided buying opportunity to the members into the direction of the green right side tag.

BABA 1 Hour Elliott Wave Chart
BABA Elliott Wave: Buying The Wave Four Pullback

Here's 1 hour Elliott Wave Chart of BABA from 1/03/2020, in which the stock is showing reaction higher taking place from the blue box area. Allowed members to create a risk-free position shortly after taking the longs.
 

Elliottwave-Forecast

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Feb 17, 2017
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Zendesk (NYSE: ZEN) bullish trend since IPO is still in progress despite the 30% correction which took place last year. The Bulls remained in Control as the stock ended a corrective 3 swing move lower then started a new rally since October 2019.

Up from there, Zen is currently showing an incomplete bullish sequence suggesting further upside to be seen as long as the pullbacks will remain supported above $71.75 low. The move will allow the stock to establish an impulsive 5 waves advance which can aim for new all time highs with a target at $102 - $115 area.

The move higher can take 2 slightly different path with the same end result which is more upside. The aggressive bullish scenario would suggest a nest taking place within wave III and pullback will remain shallow within a higher high sequence to take Zendesk toward new all time highs. The second scenario would suggest another leg higher to end 5 waves advance from December 2019 followed by 3 waves pullback to correct that cycle before the stock resume the rally again toward new highs.

Consequently, Zendesk in the short term will be looking to see further extension higher as both forecasts are pointing higher supporting the current rally and it would suggest that buyer would remain in control during pullbacks in 3 , 7 or 11 swings.

Zendesk ZEN 4H Chart ( Scenario 1 )
Zendesk ZEN 4H 1.28.2020

Zendesk ZEN 4H Chart ( Scenario 2 )
Zendesk ZEN 4H Alt 1.28.2020
 

Elliottwave-Forecast

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Feb 17, 2017
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In this technical blog, we're going to make a recap of our recent forecast in Silver (XAG), which has been following the path that we had established in our charts offered to the customers of Elliottwave-Forecast. If you've been following us in the last couple of weeks, an interesting move has happened in the metal across the board after having posted a low below the $17.70 barrier on January 14th. Around there, Silver finished a wave W red and initiated an upward move in the context of a wave X red.

Before making the recap of our forecast, we should highlight to those who don't join us yet at our forecasting service that our philosophy is to not follow the fundamentals, as we believe the market moves on a technical dynamic and the news/events that happen in the world just act as a catalyst for the moves that the market's technical nature has established.

That's why we don't care about the recent developments in the context of the trade war between US-China, tensions in the Middle East and the most recent news that has caught the attention of the press regarding the outbreak of coronavirus across China and other countries. We mention this because the Elliott Wave theory can explain the recent dynamics in the financial markets, including the USD moves.

Silver (XAG) Hourly London update from 1.20.2020
The metal has been following an A-B-C structure since the lows from January 14th, 2020. From January 16th, it managed to consolidate the price action in favor of an impulsive structure in 5 waves and the 5th wave was proposed to end near $18.20 in order to conclude wave X red.

silver

Silver (XAG) Hourly London update from 1.21.2020
As we've forecasted it, Silver managed to end the wave X red around $18.20 and then it started to develop a w-x-y structure inside a (w) wave, looking to reach new lows across the board.

silver

Silver (XAG) NY midday update from 1.21.2020
Quickly, the metal plummeted to test fresh monthly lows as we've forecasted it. In the meantime, we've switched our view to an impulsive move to the downside, in the context of an (a)-(b)-(c) structure.

silver