Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Since the crash of March 2020, all stocks have tried to recover what they lost, and Disney was no exception. Disney did not only recover the lost, but It also reached historic highs. Now, we are going to try to build an impulse from the March 2020 lows with a target around $230. Target measured from 0 to 2019’s high projected from March’s low, equal legs. Since we begin with this analysis on February 13th, we bought the share in 160.97 - 165.89 area.

Disney Old Daily Chart

Disney Old Daily Chart As we see in the daily chart, the waves ((1)), ((2)) and ((3)) of the impulse are done. We hit our first target at 190.88. The target gave us a return of +18.58% from 160.97. Disney dropped showing us that an irregular flat took place, and it has not finished yet. The rally to $230.00 must wait.

Disney Current Daily Chart

Disney Current Daily Chart

Therefore, the market breaks below wave (C), then it should be extended. The breaking is not clear, and it is more like that wave (C) of ((4)) should end in 5 waves as a ending diagonal, that means, Disney could continue ranging to the downside until we see a movement above 192.00 and more important 203.00, in that case we will confirm wave ((4)) is done. (If you want to learn more about Elliott Wave Theory, please follow this link: Elliott Wave Theory).

Source: https://elliottwave-forecast.com/stock-market/disney-wave-4-not-ended-needs-talk/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
XLI is an exchange traded fund (ETF) that tracks performance of the U.S industrial sector. In this blog, we look at an Elliott Wave analysis of the recent short term.

Below, we have an Elliott Wave 1 hourly chart from 4/21/2021, wherein the ETF peaked at red wave 3 area. As per Elliot Wave theory, the third wave of an impulse sequence has to be an impulse wave itself. Hence up from the black wave ((ii)), we see five waves in ((iii)), a pullback lower in ((iv)), and a final push up in ((v)). This completed red wave 3. However, the sequence up would have started at the beginning of black wave ((i)) which does not appear in the charts below.

The ETF then pulled back lower into the blue box. We see black waves ((a)) and ((b)) completed in 4. We expected wave ((c)) lower into the blue box to complete the correction. The right side is upside against black wave ((ii)) lows at 93.95. And therefore we bought the ETF at the blue box.

Elliott Wave 1 hour Chart 4/21/2021 XLI

Slightly contrary to our expectation for XLI to push lower for ((c)), it reacted higher without breaking the previous low. However, this does not change our view. The ETF reached the blue box nonetheless. Indeed, it reacted higher after reaching the blue box as shown in the 1 hour chart from 4/22/2021 below. Up from the wave 4 lows in the blue box, we expected the ETF to complete black wave ((i)) of red wave 5. As at 4/22/2021, our long positions from the blue box is already running risk free. We expect to see more upside in the ETF in the next sessions as US industrial sector recovery continues.

Elliott Wave 1 hour Chart 4/22/2021 XLI

Source: https://elliottwave-forecast.com/stock-market/xli-found-buyers-blue-box-reacted-higher/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Qubes Long Term Cycles & Elliott Wave $QQQ

Firstly the QQQ instrument inception date was in March 1999. That was before it ended a larger cycle up from the all time lows in March 2000. The ETF instrument mirrors the price movement of the Nasdaq.

As shown below from the March 2000 highs the instrument had a steep correction lower in three swings to the October 2002 lows. From there to the October 2007 highs it ended the first of the current series of Elliott wave impulses in the black color ((1)). This makes up the subdivisions of the wave ((5)) of the red I that ended on in August 2018. The correction of the cycle up from the October 2002 lows ended wave II in December 2018. The pullback into the December 2018 lows was strong. It suggested it had corrected the whole cycle from the October 2002 low.

The analysis continues below the monthly chart.



Secondly as previously suggested the QQQ instrument mirrors the Nasdaq highs & lows. As known, impulses progress in 5-9-13-17 swings. Corrections against the trend proceed in 3-7 or 11 swings. So far the bounce from the December 2018 lows appears to be three, larger degree five wave impulse sequences into the February 2021 highs at 338.19. This leaves an incomplete sequence higher.

In conclusion the instrument is bullish most immediately while above the 297.45 lows from March 2021. While above there the instrument should trade higher to a minimum target area of 347.80 in wave ((5)) of III.

Source: https://elliottwave-forecast.com/stock-market/qubes-long-term-cycles-elliott-wave-qqq/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
In this technical blog, we will look at the past performance of 1 hour Elliott Wave Charts of Facebook ticker symbol: FB, which we presented to members at the elliottwave-forecast. In which, the rally from 14 January 2021 low unfolded as an impulse structure. And showed a higher high sequence favored more upside extension to take place. Therefore, we advised members not to sell the stock & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

Facebook 1 Hour Elliott Wave Chart​

FB ( Facebook) Buying The Elliott Wave Wave 4 Pullback

Above is the 1hr Elliott wave chart of Facebook from the 4/22/2021 update. In which, the rally to $316.25 high ended wave (3) of an impulse sequence coming from 1/14/2021 low. Down from there, the stock made a pullback to correct the short-term cycle from 2/25/2021 low within wave (4). The internals of that pullback unfolded as Elliott wave double three structure where wave W ended in 3 swings at $301.95 low. Wave X bounce ended at the $310.14 high. Wave Y was expected to reach the blue box area at $295.78- $286.88 100%-161.8% Fibonacci extension area of W-X. From there, buyers were expected to appear looking for further upside ideally or for a 3 wave bounce at least. (It’s important to note that with further data we were able to adjust the degree of a pullback).

Facebook 1 Hour Elliott Wave Chart​

FB ( Facebook) Buying The Elliott Wave Wave 4 Pullback

Here’s the 1hr Elliott wave chart of Facebook from the 4/28/2021 Midday update. The stock is showing a strong reaction higher taking place from the blue box area after ending the double correction at $295.07 low. Allowed members to create a risk-free position shortly after taking the long positions at the blue box area.

Source: https://elliottwave-forecast.com/stock-market/facebook-buying-wave-4-pullback/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Quantumscape is a developer of next generation battery technology. with major high profile investors involved in this company, it has the backing to become the next interrupting technology in the EV sector. Lets take a look at the company profile and see who has backed this company:

“QuantumScape was founded in 2010 by Jagdeep Singh, Tim Holme and Professor Fritz Prinz of Stanford University. In 2012, QuantumScape began working with German automaker Volkswagen. After that 2018, Volkswagen invested $100 million in the company, becoming the largest shareholder. In the same year, Volkswagen and QuantumScape announced the establishment of a joint production project to prepare for mass production of solid state batteries. In June 2020, Volkswagen made an additional $200 million investment into the company. It is also noteworthy that Bill Gates is also an investor in QuantumScape.

On September 3, 2020, QuantumScape announced a merger with the special-purpose acquisition company Kensington Capital Acquisition. As a result of the merger, QuantumScape will receive $1 billion in financing, including funding from Volkswagen and the Qatar Investment Authority. At the same time, the company's shares will be listed on the New York Stock Exchange under the symbol QS. The transaction was completed in November 2020 and raised capital for the series production of batteries.”


Lets dig into the charts!

QuantumScape Elliottwave View:​

QuantumScape

Medium term term view from the IPO via a SPAC in the fall of 2020. This stock took a couple months before the momentum kicked in. After ((2)) set Oct 30, 2020, things really started to heat up. Wave ((3)) peaked at 87.50, rallying from ((2)) low at 11.20. After ((3)) peaked, a sharp ((4)) took place which didn’t last long before the surge in ((5)) took place. In the end, ((5)) of Red I peaked at 132.73 on December 22/2020 and the stock has been correcting ever since that time.

The current view is that the structure needs another couple swings lower to complete the sequence from the peak. There is no equal leg extreme since the 100% area would go into the negative. The best tools to use now is watching for momentum to erase the pivots and set a new extreme at the Red II low.

In Conclusion, as long as ((B)) high remains intact, prices can grind lower before resuming the upside.

Source: https://elliottwave-forecast.com/stock-market/quantumscape-qs-grinding-lower-higher/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
In this technical blog we’re going to take a quick look at the Elliott Wave charts of CADJPY, published in members area of the website. CADJPY is another Forex pair that we have been trading lately. The price is showing bullish impulsive sequences in the cycle from the March 73.78 low. Consequently, we advised members to avoid selling the pair and keep on buying the dips in the sequences of 3,7,or 11 swings whenever get chance. In further text we’re going to explain Elliott Wave Forecast and trading strategy.

CADJPY 4 Hour Elliott Wave Analysis 4.20.2020​

Wave 4 red pull back is unfolding as Elliott Wave ZigZag Pattern. Inner labeling : ((a))((b))((c)) black . Pull back has already reached its equal legs zone at 85.77-84.64 , buyers area. However at the moment we expect to see short term bounce in (iv) blue and another marginal push down in (v) within blue box. We don't recommend selling and favor the long side from the marked blue box . As the main trend is bullish we expect buyers to appear for 3 waves bounce at least. Turn can happen any moment. As soon as the price reach 50 Fibonacci Retracement against the ((b)) black peak, we should make long positions Risk Free ( put SL at BE).

Equal Legs – Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.
You can learn more about Elliott Wave Patterns and Equal Legs Areas at our Free Elliott Wave Educational Web Page.


CADJPY

CADJPY 4 Hour Elliott Wave Analysis 4.21.2020​

The pair made bounce and another marginal swing down, making 5 waves in ((c)) leg as well. Buyers appeared and we got nice reaction from the blue box . The bounce has already reached 50 fibs against the ((b)) peak. So, members who took long positions at the blue box should be in a risk free trade. Pull back 4 red is counted completed at the 85.40 low. As far as the price holds above 85.40 low, we expect further rally to continue. CADJPY

CADJPY 4 Hour Elliott Wave Analysis 4.28.2020​

85.4 low held nicely during the short term pull back. The pair made further rally as expected. We would like to see break above 3 red to confirm next leg up is in progress. That will make pair bullish against the 85.40 low in near term.

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.

CADJPY

Elliott Wave Forecast
Source: https://elliottwave-forecast.com/trading/cadjpy-forecasting-rally-buying-dips/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
In today's blog, we take a look at short term Elliott Wave view on Sugar (SB)

Sugar has the right side up against red wave 2 lows at $15.33. Up from there, one can see a clear Elliott Wave five wave impulse. The commodity completed the upside rally at around $17.79 area for red wave 3. Internally, we see subdivisions within red wave 3, which are also divided into five waves. We have black waves ((i)) to ((v)), each with five waves, although only shown in black waves ((iii)) and ((v)). Furthermore, waves ((iii)) and ((v)) have lower degree blue waves (i) to (v). Each of the blue waves also subdivides into lower degree red waves i to v. This is the nature of fractals.

Naturally, as per Elliott wave theory, we expected a correction lower in red wave 4. This correction is needed to correct the cycle in red wave 3, before we see upside continuation in red wave 5. Again, this is the nature of progression of market as per Elliott Wave Theory. Indeed the correction began lower in red wave 4, as shown below in the 1 hour chart from 4/28/2020 New York Midday update. As at 4/28/2021, the instrument had completed black wave ((a)) and ((b)). A completion of the aforementioned waves is important for projection of black wave ((c)), which would typically terminate at or within the blue box area. In this case, we expected the instrument to reach at least $16.96, and at most $16.58 in red wave 4.

Elliott Wave 1 Hour Chart 4/28/2021

Sugar SB

In the 1 hour chart below from 4/30/2021, we see the commodity reacting higher after reaching the blue box. It set red wave 4 at $16.64. As long as the red wave 4 lows hold, we expect Sugar trade higher. However, we need to see a clear break above re wave 3 peak in order to confirm the next leg higher. Moreover, a break above red wave 3 rules out a possibility of a double correction lower in red wave 4. Long positions from the blue box are running risk free, as Sugar is set to continue the rally

Elliott Wave 1 Hour Chart 4/30/2021

sugar SB

Source: https://elliottwave-forecast.com/stock-market/sugar-finds-buyers-blue-box-reacts/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
The $FXF Longer Term Cycles & Elliott Wave Analysis

Firstly there is data back to when the ETF fund began in 2006 as low as 78.43. Data correlated in the USDCHF foreign exchange pair suggests the FXF high in August 2011 is also the lows of a cycle lower from the all time in the USDCHF. In this instrument there is data available back to 1971 when the exchange rate was 4.3180.

The FXF instrument reflects the price swings of the currency pretty well since inception and as previously mentioned the instrument made a high in August 2011. This where the analysis begins on the weekly chart shown below. The correction from those highs appears to be a an Elliott Wave double three structure. The analysis continues below the monthly chart.



Secondly, as earlier mentioned the decline from the August 2011 highs appears to be an Elliott Wave double three structure. In the second swing of a double three Elliott Wave structure, it generally will reach a price where it is equal to the first swing. When a cycle ends it will show in momentum indicators usually before price makes it obvious. These cycle highs and lows are in the blue color as shown on the chart above (w)-(x) & the proposed (y) that ended January 2021 in wave b (red).

I will mention how this target area lower is obtained in conclusion. Take a Fibonacci extension tool on your chart platform. Beginning at the August 2011 highs as point 1, trace down to the January 2015 lows where the blue (w) is for point 2. Now trace back up to January 2015 blue wave (x) highs for point 3. This will give the equal legs area (not shown) at 70.95.

Source: https://elliottwave-forecast.com/stock-market/the-fxf-longer-term-cycles-elliott-wave-analysis/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
$EWC Elliott Wave & Long Term Uptrend Cycles

Firstly the EWC instrument inception date was 3/12/1996. The Canada ETF seeks to track the investment results of an index composed of large and mid-sized companies in Canada. This is of course reflected in the price. The best Elliott Wave reading of the long term cycles presume some lower prices that did not exist prior to the ETF fund inception date.

Shown on the monthly chart, the bullish cycle from all time lows is believed to have ended in November 2007. This is mostly in line with many other broad based ETF’s and indices that ended larger cycles near that time. Likewise the steep pullback lower into the March 2009 lows replicated the pullbacks in other ETF & indices instruments. This pullback was strong enough to suggest it had corrected the cycle up from the all time lows. The analysis and commentary continues below the EWC Monthly chart.

Secondly the bounce from the March 2009 lows has not got back above the November 2007 highs as of yet. Compared to other indices instruments it is lagging. That's not to say it will not catch up it is just the way it works out. EWC bounces higher as related instruments are going higher however at a slower pace. Similarly, the instrument corrects cycles in pullbacks lower when the related instruments are doing the same.

The analysis and conclusion as mentioned earlier; Price has not got above the November 2007 highs yet. As the above chart shows it will eventually in due time. The cycles remain bullish nearer term while pullbacks remain above the March 2020 lows. The instrument should proceed higher with the related other countries ETF’s and indices reflecting the improvements in the progression of mankind.

Source: https://elliottwave-forecast.com/stock-market/ewc-elliott-wave-long-term-uptrend-cycles/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
In this technical blog, we will look at the past performance of 1 hour Elliott Wave Charts of XLP, which we presented to members at the elliottwave-forecast. In which, the rally from 03 March 2021 low unfolded as an impulse structure. And showed a higher high sequence favored more upside extension to take place. Therefore, we advised members not to sell the stock & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

XLP 1 Hour Elliott Wave Chart​

XLP Another Dip Offered Another Buying Opportunity

Above is the 1hr Elliott wave chart of XLP from the 4/27/2021 update. In which, the rally to $70.47 high ended wave 3 of an impulse sequence coming from 3/03/2021 low. Down from there, the ETF made a pullback in wave 4 to correct the cycle from the 3/05/2021 low. The internals of that pullback unfolded as Elliott wave zigzag structure where wave ((a)) ended in 3 swings at $69.29 low. Wave ((b)) bounce ended at the $69.79 high. Wave ((c)) was expected to reach the blue box area at $68.61- $67.88 100%-161.8% Fibonacci extension area of ((a))-((b)). From there, buyers were expected to appear looking for further upside ideally or for a 3 wave bounce at least.

XLP 1 Hour Elliott Wave Chart​

XLP Another Dip Offered Another Buying Opportunity

Here’s the latest 1hr Elliott wave chart of XLP from the 5/04/2021 Post-Market update. The ETF is showing a strong reaction higher taking place from the blue box area after ending the zigzag correction at $68.43 low. Allowed members to create a risk-free position shortly after taking the long positions at the blue box area.

Source: https://elliottwave-forecast.com/stock-market/xlp-another-dip-offered-another-buying-opportunity/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
An increasing number of companies gave warning for supply shortage which force them to raise prices. Manufacturers and producers from various industries such as semiconductors, lumber and cotton scramble to replenish stockpiles to keep up with demand and higher input prices. However, central bankers still argue that price gains are transitory. They claim it will be offset by deflationary forces such as pandemic and high unemployment.

The Bloomberg Commodity Spot Index, which tracks 23 raw materials, has risen to its highest level in almost 10 years. This has caused US producer price index to rise to levels last seen in 2008. Trillions of dollars printing by central banks around the world, particularly the U.S., has boosted a rally in raw materials. The opening of business and activities around the world from the lockdown further exacerbate shortage across several markets.

Gold and Silver have also started to move higher again after forming a cycle high on August 2020 and consolidating in almost 10 months correction. Precious metals, especially silver, are quite interesting due to their dual role in monetary as well as industrial use. Thus, the current thesis in fiat currency debasement and hyper-inflation should play in their favor. In this article, we will take a look at the Elliott Wave structure

Gold 4 Hour Elliott Wave Chart​

Gold Elliott Wave Chart

After forming cycle low on March 9, we can see above that Gold shows a 5 waves move higher. This suggests it has started to turn bullish and should see further upside with invalidation level at 1679. Keep an eye on the momentum divergence. As long as the divergence is there, it is possible to see Gold pulling back to correct the 5 waves up before extending the rally higher. However, if the divergence is erased, then Gold could turn to a more bullish nesting (1)-(2)-1-2 view.

Silver 4 Hour Elliott Wave Chart​



Similar to Gold, Silver is now also showing 5 waves up from March 31, 2021 low. This suggests silver should extend higher. We can also see momentum divergence in Silver and as long as this divergence is intact, there's a possibility Silver might need to do larger 3 waves pullback first before the rally resumes. However, if the divergence is erased, then Silver could have started a bigger wave (3) which suggests more upside in the near term.

Source: https://elliottwave-forecast.com/commodities/inflation-risk-supports-gold-and-silver/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Microvision was a little well known company during the March 2020 correction. It set an all time low at 18 cents at the time. From that low, it has exploded to as high as $31.14 recently due to its technology possibly being utilized in the auto industry among other sectors. Lets take a look at what they do as a company:

MicroVision, Inc. is an American company that develops laser scanning technology for projection, 3D sensing, and image capture. MicroVision's display technology uses a micro-electrical mechanical systems (MEMS) scanning mirror with red, green, blue, and infrared lasers, optics and electronics to project and/or capture images. The company licenses its products primarily to original equipment manufacturers (OEMs) such as STMicroelectronics.

The MEMS scanning micro-mirror is the basis of MicroVision’s technology platform. The MEMS design consists of a silicon device with a millimeter-scale mirror at the center. The mirror is connected to flexures that allow it to swing vertically and horizontally to display (or capture) an image.

In projection-mode the MEMS laser beam scanning display method can be compared to raster scanning in a cathode ray tube (CRT) display. Product applications include mobile projection virtual retinal display, head-mounted display, and automotive head-up display. The technology has also been used in a smartphone by the manufacturer Blackview."


So why the huge 17,700% rally? Their LiDAR Technology is being adapted for use in auto sector, mapping and photography which is projected to be a 2.9 Billion Dollar industry by 2027. Recently, buy out rumors have also caused a stir. But, lets take a look and see what the chart says about this company!

Microvision Elliotwave View:

Microvision

Medium term term view from the all time low in March 2020. This stock took its time for the momentum to kick in. The stock chopped around sideways to higher in a nesting structure setting a low in November 2020. From that time, the rally really took hold.

Within the timespan of 3 months, the stock rallied from (2) low of 1.52 to a peak of 24.18. After that, a correction took place in Red II which struck a low on April 19th at 10.01. From there, another sharp rally took place which set a new high at 31.14. Prices are now pulling back from that peak and have pulled back into the blue box extreme area where a bounce can take place.

In Conclusion, as long as Red II low holds, further upside extension is favoured to take place.

Source: https://elliottwave-forecast.com/stock-market/microvision-inc-mvis-ready-another-advance/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of EURJPY pair , published in members area of the website. EURJPY is showing bullish sequences in the cycle from the 05/07 (114.474 ) low . As our members know, we’ve been calling rally in this forex pair. We recommended members to avoid selling in any proposed pull back and keep buying the dips in 3,7,11 swings. Recently EURJPY made pull back that has unfolded as Elliott Wave Zig Zag pattern . In the further text we are going to explain the Elliott Wave Pattern Forecast and Trading Strategy.

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

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.

EURJPY Now let’s take a look what Elliott Wave Zig Zag looks like in real market example and how we traded it.

EURJPY Elliott Wave 1 Hour Chart 5.4.2021​

Right side remains in the favor of the Forex pair. EURJPY remains buy in a dips. Wave (ii) black pull back is unfolding as Elliott Wave Zig Zag pattern with inner labeling: (a)(b)(c) blue. We can see that wave (a) blue shows clear 5 waves structures. At the moment pull back looks incomplete. The price is missing equal legs from the peak, and wave (c) blue leg doesn't have 5 waves yet. The pair should ideally see more short term weakness toward blue box area: 131.083-130.42 . We don't recommend selling and favor the long side from the mentioned zone. As the main trend is bullish we expect buyers to appear for 3 waves bounce at least. Trading strategy is waiting for Equal legs: Blue Box to be reached before buying the pair.
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.

EURJPY

EURJPY Elliott Wave 1 Hour Chart 5.5.2021​

The pair made more downside toward the blue box as expected. The price made 5 waves down in (c) leg. Buyers appeared and we are getting reaction. We believe pull back is completed at 130.95 low, however bounce is still shallow. We still need to see further separation from the latest low to confirm cycle from the peak is completed. As soon as the price reaches 50 fibs against the (b) high we will make long positions risk free. ( put SL at BE). If the price breaks current short term low, we will stick with the long trade as far as the price stays above 1.618 fib ext level: 130.42

EURJPY Elliott Wave 1 Hour Chart 5.5.2021​

130.95 low held nicely and the Forex Pair made further rally. Eventually the price has broken previous peak 04/29 , confirming next leg up is in progress. Right side remains the long side. We don't recommend selling the pair in any proposed pull back and favor the long side. The pair is expected to keep finding buyers in 3,7,11 swings.

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

Elliott Wave Forecast
Source: https://elliottwave-forecast.com/trading/eurjpy-buying-the-dips-at-the-blue-box/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
In this technical blog, we will look at the past performance of 1 hour Elliott Wave Charts of DAX index. In which, the rally from 28 January 2021 low unfolded as an impulse structure. And showed a higher high sequence with a bullish sequence stamp favored more upside extension to take place. Therefore, we advised members not to sell the index & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

DAX 1 Hour Elliott Wave Chart​

Below is the 1hr Elliott wave chart of DAX from the 5/05/2021 Asia update. In which, the rally to 15501.84 high ended the higher degree wave 3. Down from there, the index corrected lower within wave 4 pullback. The internals of that pullback unfolded as Elliott wave zigzag structure where the first leg of the pullback ended in wave ((a)) at 15071.78 low. While a 3 wave bounce ended wave ((b)) at 15355.28 high.

Then the index started the next leg lower of the pullback in wave ((c)). And managed to reach the blue box area at 14926.25- 14661.90 100%-161.8% Fibonacci extension area of ((a))-((b)). From there, buyers were expected to appear looking for further upside ideally or for a 3 wave bounce at least.

DAX Forecasting The Bounce From Blue Box Area

DAX 1 Hour Elliott Wave Chart​

Here’s the 1hr Elliott wave chart of DAX from the 5/07/2021 Midday update. The index is showing a strong reaction higher taking place from the blue box area after ending the zigzag correction at 14836.70 low. Allowed members to create a risk-free position shortly after taking the long positions at the blue box area. However, a break above 15501.84 high still needs to be seen to confirm the next leg higher & avoid double correction lower.

DAX Forecasting The Bounce From Blue Box Area

Source: https://elliottwave-forecast.com/stock-market/dax-forecasting-bounce-blue-box-area/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Since the crash of March 2020, all stocks have tried to recover what they lost and P&G was no exception. P&G did not only recover the lost, but It also reached historic highs. Now, we are going to try to build an impulse from wave II with a first target to $154.00 next $167.50 and $174.00.

P&G Old Daily Chart

P&G Old Daily Chart As we see in the daily chart, P&G built an impulse ((1)), ((2)), ((3)), ((4)), and ((5)) that we call I in red and it ended at 146.92. Then, the stock dropped in 7 swings down ((W)), ((X)) and ((Y)) forming a double correction and wave II. This wave II bounced from 121.54 dollars missing our ideal level for a few cents at 120.68. (If you want to learn more about Elliott Wave Theory, please follow this link: Elliott Wave Theory).

P&G New Daily Chart

P&G New Daily Chart

P&G rallied, and it completed wave ((1)) at 138.63 dollars. Also, we have seen a pullback that bounced at 130.19 dollars, Fibonacci 50% retracement, ending for us the wave ((2)). As we stay above this level, we should continue higher in order to build a new impulse as wave (1) before to see another correction. If 130.19 level breaks it will entry in a double correction but keeping above the 121.54 level and then continue higher again. Remember our first target is $154.00.

Source: https://elliottwave-forecast.com/stock-market/pg-keep-moving-higher-pause-correction/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Cotton is one of soft commodities, along with sugar, coffee, orange juice and cocoa. In early centuries, Alexander the Great has brought cotton from Pakistan to Europe. Much later and finally, it has obtained the dominance in textile manufacturing during the British industrial revolution in the 18th century. It was so critical that at times of Civil War in North America the Confederate bonds sold in Europe were backed by cotton. Today, the largest producers and, at the same time, the largest consumers of cotton are China and India. One can trade Cotton futures at ICE owned New York Board of Trade in contracts of 50'000 pounds each under the ticker CT #F. Also, there are similar contracts at CME owned NYMEX under the ticker TT #F.

Currently, we see other soft commodities like coffee and sugar turning higher after a long period of depressed prices. Based on the correlation within group of softs, the cotton is expected to turn higher as well. In particular, wave structure of CT #F supports that bullish view. Will the rally in the cotton prices make buying of the new clothes less affordable for the broad population?

Cotton Quarterly Elliott Wave Analysis 05.08.2021​

The quarterly chart below shows the cotton front contract CT #F at NYBOT. Historically, cotton has been traded at New York Cotton Exchange since 1870. Later, it moved to NYBOT and the chart data shows cotton prices from 1972 on. From the lows, the prices have developed a corrective cycle higher in black wave ((w)) of a grand super cycle degree. One can see it as an Elliott Wave zigzag pattern. Hereby, blue wave (a) has demonstrated a leading diagonal structure and has ended in 3rd quarter of 1980. From there, a running triangle in wave (b) has caught the market in range bound oscillations until the 4th quarter of 2008. From there, the sideways market has resolved into an acceleration higher within an impulsive move in wave (c). Hereby, cotton has made 6x in prrice and saw the all-time highs in the 1st quarter of 2011 at 219.70.

From the all-time highs in 2011, a correction lower in wave ((x)) has unfolded as an Elliott Wave double three pattern. In 9 years, CT #F has become cheaper by 78% reaching 48.35 level. It is the preferred view that an important bottom on April 2020 has been set and the correction has ended. From the lows, a new multi-decade cycle within black wave ((y)) may have started.

For 2021-2040, the expectations are to retest if not to break above the all-time highs. The target for wave ((y)) will be 268-404 area. From current levels, the cotton can, therefore, tripple in price.

Cotton Elliott Wave Quarterly

Cotton Daily Elliott Wave Analysis 05.08.2021​

The daily chart below shows in more detail the first stages of the new cycle within grand super cycle in black wave ((w)). From April 2020 lows, a clear impulse in black wave ((1)) has ended. A pullback in wave ((2)) might have ended at 77.12 on March 26th. While above there, wave ((3)) can extend higher. Long term investors can be looking building up a long position in pullback against 48.35 lows expecting more upside.



Source: https://elliottwave-forecast.com/commodities/cotton-started-new-cycle/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Back in December 2020, we presented within the main article both the monthly and the daily view in the USDRUB. Long-term, the pair should provide a resolution thrust higher out of multi-year triangle pattern. Medium-term, however, we saw Russian Rouble gaining strength as related to the US Dollar. Even though russian currency needed to tank, the idea favoring more Rouble strength remains the same. Here, we present updated daily chart and discuss the targets.

Rouble Daily Elliott Wave Analysis 05.11.2021​

The daily chart below shows the c leg lower of the triangle in wave (IV) in more detail. From the March 2020 highs at 82.90, the pair has demonstrated a first leg lower which has accomplished 7 swings corrective structure in wave ((W)). Then, a bounce in wave ((X)) has failed below the March 2020 peak. Currently, while below 80.95, another leg down is in progress. It should develop a corrective structure and reach in wave ((Y)) towards 66.07-56.87 area. There, it should find support for a bounce in red wave d higher. Otherwise, in case of breaking below 56.87 level, the triangle pattern in wave (IV) will need a reevaluation.

Within wave ((Y)), waves (W) and (X) have ended. Now, while below the April 4th peak at 78.05, wave (Y) of ((Y)) might be already in progress and we see it within the red wave A of (Y). One of the reasons favoring more downside in USDRUB is the expanded flat structure within wave (X). In fact, it is a continuation pattern. Therefore, another leg lower similar to the cycle in blue wave (W) of ((Y)) should take place.

As an outlook, decline towards 66.07-56.87 area signifies the medium term Rouble strength. Therefore, traders can be looking to sell the bounces against 78.05 peak in 3, 7 or 11 swings until USDRUB will not not reach at least 66.07 level. However, long term favors still the dominance of the Dollar over the currency of the Russian federation. Indeed, the larger cycle from 2008 looks still incomplete and 85.94 highs should still be reached in a longer run.

Rouble Elliott Wave Daily

Source: https://elliottwave-forecast.com/forex/rouble-continue-show-strength/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Brazil, top exporter of Sugar, experiences record prices of ethanol as Covid-19 restrictions ease. Consumers take advantage of the easing and start travelling again, increasing consumption of biofuel. This means that mills can start processing more sugar cane into ethanol, rather than into sweetener as it's also generally more profitable.

Severe droughts hitting Brazil has already created tight cane supplies. According to industry group Unica, cane crushing declined by 31% in the first half of April compared to last year. These two factors help sugar to extend the relentless rally. Futures prices in New York are already up 73% in the past 12 months. We are going to look at the technical chart of Sugar Futures (SB_F) using Elliott Wave below:

SB_F Daily Elliott Wave Chart​



Since forming the low on April 28, 2020, SB_F has rallied relentlessly. The structure of the rally is an impulse and ended wave ((1)) at $16.73 then pullback in wave ((2)) also ended at $14.68 on April 1, 2021. From there, SB_F extends the rally and has broken above wave ((1)), suggesting wave ((3)) is currently in progress. Internal of wave ((3)) is also unfolding as another 5 waves of lesser degree. Up from wave ((2)), wave (1) ended at 17.79 and pullback in wave (2) ended at 16.46 on April 29, 2021. Near term, while pullback stays above wave (2) low at 16.46, and more importantly above wave ((2)) low at 14.68, SB_F should extend higher.

Source: https://elliottwave-forecast.com/commodities/global-sugar-supply-shortage-propels-price/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of IBEX index published in members area of the Elliottwave-Forecast . As our members know, IBEX is another index that has given us good trading opportunity recently. The index is showing impulsive sequences in the cycle from the March 2020 low. Also showing incomplete higher high sequences in the cycle from the 10/25 low, suggesting further extension higher. We recommended members to avoid selling and keep on buying the dips in 3,7,11 swings. Recently we got short term pull back that has given us opportunity to enter long trades again. In further text we’re going to explain the forecast and trading strategy.

IBEX 1 Hour Asia Elliott Wave Analysis 5.13.2021​

IBEX is correcting the rally from the 3/23 low. We assume 4 red pull back is still in progress as Elliott Wave ZigZag pattern. The index made 5 waves down from the peak in ((a)) black and 3 waves bounce in ((b)) black. Ibex should ideally give us another leg down ((c)) of 4 before buyers appear again for further rally or 3 waves bounce alternatively. We don't recommend selling it against the main bullish trend.

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

IBEX

IBEX 1 Hour London Elliott Wave Analysis 5.13.2021​

IBEX made proposed leg down and reached equal legs ((a))-(b)) at 8851.83-8726.04 . At that zone we would like to be buyers , looking for further rally toward new highs ideally. As the main trend is bullish, we should get 3 wave bounce at least from the Blue Box buyers zone. Invalidation level for the trade would be break below 1.6148 fib extension (8726.04). As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. As soon as the price reaches 50 Fibs against the ((b)) peak, we will make long positions risk free ( put SL at BE).

IBEX

IBEX 1 Hour Elliott Wave Analysis 5.17.2021​

The index found buyers right at the blue box. We got nice rally from the buying zone, when the price break above previous peak. Break above 3 red peak suggested next leg up is in progress. The index is now bullish against the 8804.1 ow in first degree. Members who took longs at the blue box are enjoying profits in risk free trades.

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.

Ibex

Elliott Wave Forecast
Source: https://elliottwave-forecast.com/trading/ibex-buying-dips-blue-box-area/
Post automatically merged:

Since the crash of March 2020, all stocks have tried to recover what they lost, and Disney was no exception. Disney did not only recover the lost, but It also reached historic highs. Now, we are going to try to build an impulse from the March 2020 lows with a target around $230. Target measured from 0 to 2019’s high projected from March’s low, equal legs. Since we begin with this analysis on February 13th, we bought the share in 160.97 - 165.89 area.

Disney Old Daily Chart

Disney Old Daily Chart As we see in the daily chart, the waves ((1)), ((2)) and ((3)) of the impulse are done. We hit our first target at 190.88. The target gave us a return of +18.58% from 160.97. Disney dropped showing us that an irregular flat took place. The wave (C) had been playing very nice to complete as a ending diagonal, but that idea truncated last week. (If you want to learn more about Elliott Wave Theory, please follow this link: Elliott Wave Theory).

Disney Current Daily Chart

Disney Current Daily Chart

Last Thursday, Disney's Q2 FY21 earnings results came up and there was a disappointment because Disney+ did not reach the expectations. The stock rapidly broke down post market hours and changed the wave ((4)) structure as a (W), (X), and (Y), where wave (Y)’s connector is a flat correction as red X. The price reached our target area, 170.09 – 174.41, to end the wave ((4)) and for us, technically, Disney should resume the uptrend looking for $230.00 target.

Source: https://elliottwave-forecast.com/stock-market/disney-reached-target-continue-higher/
 

Elliottwave-Forecast

Master Trader
Feb 17, 2017
1,470
6
64
www.elliottwave-forecast.com
Natural Gas Resumed Higher After It found Buyers In The Blue Box

In this blog, we take a look at the short term view on Natural Gas reaching the blue box and reacting higher after finding buyers. On the 1 hour chart from 5/11/2021, the commodity rallied in 5 impulse waves in the subminuette (red) degree. This completed blue wave (iii) at around $2900 -$3000 area. According to the Elliott Wave theory, a correction should follow an impulse. One therefore, expected to see a pullback lower in blue wave (iv).

We saw a decline from blue wave (iv) peak in a form of a zig zag, towards the blue box. Internally, we saw a decline in five waves in red wave a, as it is in the nature of zig zag corrective structures. Naturally, we anticipated red wave b to correct red wave a. Finally, we expected to see 5 waves in red wave c to complete the pullback in blue wave (iv). As per our strategy and forecast, we expected to see a reaction higher from the blue box area once reached. The right side is up aganist $2.655 lows.

Elliott Wave 1 hour chart dated 5/11/2021

Natural Gas (NG)

The 1 hour chart below is from 5/14/2021. In it, we see that the commodity briefly penetrated the blue box area. We subsequently saw a reaction higher from the blue box as per our forecast from 5/11/2021. Therefore, we proposed blue wave (iv) completed at $2.881. Indeed, we saw the commodity react higher suggesting that it is headed higher in blue (v), as expected. As at 5/14/2021, long positions from the blue box area were already running risk free. However, we need to see a clear break above blue wave (iii). Only then can we confirm the next leg higher in blue wave (v).

We proposed red waves i and ii of blue wave (v) completed. One can expect the commodity to continue higher in red waves iii-v. As a matter of fact, we do not expect the proposed move in wave (v) to go in a straight line, as the market hardly exhibit linear moves. We expect the commodity to pullback in the larger degree once we call blue wave (v) completed.

Elliott Wave 1 hour chart dated 5/14/2021

Natural Gas (NG)

Source: https://elliottwave-forecast.com/commodities/natural-gas-reacts-higher-blue-box/