Elliott Wave Analysis by EWF

[Elliottwave-Forecast]

Hello fellow traders. Today, I want to share some Elliott Wave charts of the Facebook stock which we presented to our members in the past. Below, you see the 1-hour updated chart presented to our clients on the 01/17/19. showing that FB has a 1H right side tag against 141.26 low.

From 01/14/19 low (141.31) Facebook ended that short-term cycle at 01/15/19 peak (150.74) in black wave ((W)). Below from there, we advised members that it should see the equal legs from 01/15/19 peak towards the areas of the 100 - 1.618 Fibonacci extension of blue wave (A)-(B) which came around 147.00-145.27 and unfolded as an Elliott Wave Flat structure. Therefore, we expected buyers to appear in the sequences of 3, 7 or 11 swings. And that was the first area for buyers to appear to take prices to new high above 01/15/19 (150.74) peak. Or a larger 3 waves reaction at least.

FB 01.17.2019 1 Hour Chart Elliott Wave Analysis




In the last Elliott Wave chart, you can see that FB reached the blue box area and extend a bit lower like forecasted. Then it showed a nice impulsive reaction higher. Due to the right side tag. We advised members to buy the blue box. And if traded our blue box. Any trades from that area have been risk-free, which means the stop-loss was moved to breakeven, targeting higher levels. Do please keep in mind that the 1-hour chart which I presented have changed already. The blue boxes you see in our charts are our so-called High-Frequency boxes. Where the market ideally shows us a reaction either lower or higher.



Facebook 01.18.2018 1 Hour Chart Elliott Wave Analysis




I hope you enjoyed this blog.

 

[Elliottwave-Forecast]

Zynga (NASDAQ: ZNGA) is a video game developer company focused on social mobile gaming. With popular games like FarmVille and Zynga Poker, the American publisher managed to stand out in a crowded market.

In the recent decade, the number of gamers grow in a fast pace and leading companies like Activision Blizzard (NASDAQ: ATVI) & Electronic Arts (NASDAQ: EA) are providing more creative content with better graphics. Investors turned to gaming stocks and helped to drive the market higher in the recent year. However despite the uptrend for the sector, ZNGA remained as an undervalued stock with a price below $5 with huge potential in the future.

Despite last year sell-off in EA and ATVI, ZNGA remained in a sideways range and closed 2018 for only -2%. Currently at the start of of 2019, the stock is already up +14% so with earning report coming this week we'll take a look at its technical chart.

ZNGA Weekly Elliott Wave Chart


In the above chart, the stock made an impulsive 5 waves advance from 2016 low which ended June from last year at $4.57 peak. Then the stock corrected the entire cycle lower in a classical 3 waves zigzag structure before turning higher again. So ZNGA established a new bullish Elliott Wave trend with impulsive momentum to the upside and corrective structure to the downside.



At this stage, the stock managed to break above 2018 peak which confirmed the bullish path and it's now presenting a new incomplete bullish sequence for the stock. The measured target to the upside start at the 100% Fibonacci ext at $6.11 which could remain a minimum target with a potential move above the 161.8% fib ext at $7.84 if the stock have enough momentum to continue as regular impulse. Consequently, the previous 2 year bullish cycle ( 2016 -> 2018 ) could be only the first wave of a bigger 5 waves move to the upside so the stock still have enough room to the outside.

Conclusion
The gaming industry outlook remains promising and Zynga is becoming one main acting hands in the market which put huge potential for its stock to rise. The technical picture for ZNGA looks bullish and it could see a strong breakout in the second quarter of 2019.

 

[Elliottwave-Forecast]

Ishares Silver Trust (SLV) Larger Cycles and Elliott Wave

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

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

The analysis continues below the weekly chart. Here is the SLV Weekly Chart.



Thirdly, the cycle from the April 2011 high appeared to have ended with the bounce to the August 2016 high. That bounce appeared to be a diagonal wave one of large degree. Here is where the daily chart shown below picks up with the Elliott Wave labeling. Next, the pull back lower is a pretty tough count. My best effort suggests it was a double three. The two waves of motive there, the black ((A)) & ((C)) were diagonal impulses separated in the connector wave ((B)). This is a complex double three (W)-(X)-(Y). The wave (Y) ended with a bearish triangle. The decline from the June 14, 2018 high ended on September 11th 2018 just above the lows from December 2015. The bounce from the September lows is strong. It ended the cycle from the August 2016 highs.

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



In conclusion, the bounce from the September 11, 2018 lows exhibits all qualities of an impulse in the black wave ((1)) thus far. However it is incomplete at this point and should go higher. A pullback in the smaller degree blue (4) when seen could retest or end either side of the January 22nd 2019 lows. It should see another high again afterward. However it is hard to pinpoint exactly where not knowing the blue (3) and (4) points at this time. Thus as of now it appears it would be around the 16.20 to 16.50 area. Next when it corrects the cycle from the September 2018 lows it will be expected to remain above there.

Thanks for looking.

Kind regards & good luck trading.

Lewis Jones

 

[Elliottwave-Forecast]

FTSE was correcting the cycle from the 6530.6 low,when the pull back was unfolding as Elliott Wave FLAT pattern. We expected FTSE to trade higher due to 5 waves rally in the cycle from the December 27th 2018 low. In addition, we have incomplete bullish sequences in European indices like DAX and IBEX, suggesting that FTSE will be supported as well. In the following article, we’re going to explain the Elliott wave structure and Forecast.

FTSE 1 Hour Elliott Wave Analysis 1.28.2019

As we can see on the chart below , the Index made 5 waves structure in the rally from the 6530.64 low. So we believe that can be only the first leg of the ABC Zig Zag recovery. Pull back against the 6530.64 low is unfolding as Elliott Wave Flat, when we can now be in the last leg wave (v) of ((c)) of B red Flat. FTSE should ideally find buyers at 6783.5-6656.18 before giving us another leg higher ideally to allow DAX and IBEX to reach their extremes in the cycles from the 12/27 2018 lows. Price has reached the blue box, but there is no sign yet that the pull back is done. FTSE still can extend lower in short term within blue box as shown on the chart. We don’t recommend selling the index at this stage and expect buyers to appear any moment.



FTSE 1 Hour Elliott Wave Analysis 1.28.2019
Buyers appeared right at the blue box when Elliott Wave Flat completed at 6734.84 low. Recently we got a new short term high with a break above 01/11 low, confirming next leg up C red is in progress. At this stage FTSE is bullish against the 6734.84 pivot, suggesting more upside toward 7197 area. Now as far as 6734.84 pivot holds, intraday pull backs should ideally find buyers in 3,7,11 swings for proposed rally or 3 wave bounce at least.

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.

 

[Elliottwave-Forecast]

Elliott wave view in Facebook (ticker symbol: $FB) suggests that the rally from December 24.2018 low ($122.55) is unfolding as Elliott wave zigzag structure. The first leg of a zigzag structure ended in wave ((A)) at $152.43 high. Down from there, wave ((B)) pullback unfolded as double three structure where wave (W) ended at $146.37 low. Wave (X) bounce ended at $148.80 high and wave (Y) of ((B)) ended at $142.52 low. A zigzag structure is a 5-3-5 structure where wave ((A)) & ((C)) can unfold as an impulse or a diagonal structures.

In Facebook case, the wave ((C)) is taking a form of an impulse structure where wave (1) ended at $149.83. Wave (2) pullback ended at $143.46 low in lesser degree zigzag structure. Wave (3) ended at $171.68 high in lesser degree 5 waves structure. And wave (4) pullback unfolded as double three structure where wave W ended at $165.35 low. Wave X bounce ended at $169.10 high and wave Y of (4) ended at $163.62 low.

While above there, the stock is expected to resume the upside 1 more time in wave (5) towards $172.61-$191.13 100%-161.8% Fibonacci extension area of ((A))-((B)) before it ends the zigzag structure & turns lower again or pull back in 3 swings at least. A break above $171.68 high still needed to confirm the next leg higher until than a double correction lower in wave (4) can't be ruled out. Near-term, while above $143.46 low, expect Facebook to extend higher.

Facebook 1 Hour Elliott Wave Chart

 

[Elliottwave-Forecast]

$SPY : More Volatility Still To Come Due to Market Nature

Looking at the Monthly chart of the Index, we can conclude that most Volatility is still to come. The Market by nature advances with the trend and then pulls back against the trend. The Elliott Wave Theory always suggests one of the 3 advances will be extended. Most of the times the wave (III) is the stronger. The Index has created a strong move since lows at 2009. It is hard to believe another strong rally will come due to the extension since 2009.The Index Monthly chart show a advance since 2009 which can have an Elliott wave nest at the early stage. We are showing that in the following chart.

We have identified 2 possible paths, and both have similar characteristics.

Path 1: The Index is still within the powerful wave (III) blue. Even though the chart shows wave IV completed and a new high by holding above December 2018 low but nothing has yet confirmed that wave IV is in place so a double correction lower which breaks below December 2018 low could still happen to complete red wave IV or a sideways consolidation in the form of a triangle in wave IV red. Within this path the minimum upside target will be the inverse 123.6% extension of wave IV and that could be worked out once we have got confirmation that red wave IV has completed. In case red wave IV is already over, then inverse 123.6% extension would be in 307.6 area.

This path is supported by the idea that $SPY (I)-(II) extension has not yet been reached. The 1.618 % extension is at 315.00. Most of the time wave (III) will end near there. Another reason that support this path is the idea that the Stochastic is snaking at the monthly chart which most of the time represent a wave (III) in progress due to the powerful momentum. Furthermore, the cycle from 2009 is holding the channel. The following chart is showing the Quarterly chart with the snake in stochastic indicator.

Path 2: The $SPY Index ended the cycle from 2009. Thus we will be doing a series of 3-7-11 swings lower. We would already be within the wave (IV) Blue. This path will make the Index holding last year peak and turning lower by 2.13.19-2.18.19 or 2.25.19 to 3.5.19. We should see another leg lower before a turn back higher.

This path is supported by the idea that stocks like $APPL and $FB have ended their all-time cycle up. This is very similar to the 2009 cycle.

Placing both paths together and seeing the strong advance since 2009, we believe a wave III in some degree have already ended and a series of nests either within the 2009 cycle or a big wave (IV) will take place. We are ready and with the help of the Elliott wave Theory to understand that a lot of volatility can happen in 2019 and buying the dips is The Right Side.

 

[Elliottwave-Forecast]

NZDCAD remains bullish as long as today's low (0.9008) remains untouched. On the 1 hour chart there are clear visible bullish patterns that can be seen. In the chart below, market patterns are used to determine where price can possibly pause and reverse higher. The green bullish pattern has already triggered BUYS at the XA 0.886% Fib. retracement level. The green bullish pattern point D terminated slightly below the XA 0.886% level but did not extend below the invalidation level and has since bounced higher. Traders should now watch the possible blue and orange bullish patterns that trigger BUYS on a dip lower from current price. Blue bullish pattern triggers BUYS at the BC 0.50% Fib. retracement level and if price extends a little lower the orange bullish pattern will trigger BUYS at the XA 0.886% Fib. retracement level. Traders need to wait and watch how price reacts at the possible support zone (blue box) and see if the market reacts higher to any of these bullish patterns. If looking to trade NZDCAD stops should be placed at the point B low of the blue bullish pattern looking for a rally higher to extend higher and hit targets above. Only time will tell what NZDCAD will do but at least now you are aware of the possible area where the pair can bounce from.

NZDCAD 1 Hour Chart 2.5.2019







Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article.

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

 

[Elliottwave-Forecast]

Many Elliott wave practitioners call every WXY structure a double zigzag structure when in reality, every WXY structure is not a double zigzag structure. In this blog, we explain the difference between a double zigzag Elliott wave structure and a double three Elliott wave structure and take a look at a double zigzag structure which is unfolding in the market right now.

Double Zigzag Elliott Wave Structure

Image below is that of a double Zigzag Elliott Wave Structure. Wave (W) is a zigzag in which both A and C are in 5 waves. Same is the case with wave (Y) and again both A and C are in 5 waves and that's why it qualifies as a double zigzag Elliott wave structure. Now, wave (W) can consist of any corrective structure, it could consist of a lesser degree W-X-Y and same with wave Y and if that's the case, then it would be called a double three Elliott Wave structure. Thus, to conclude we could say that every double zigzag structure is a double three structure but every double three structure is not a double zigzag.





SB_F Sugar Elliott Wave Analysis: Weekly Chart

Below is the weekly chart of Sugar Futures which shows 5 swings a zigzag drop from $36.08 down to $10.13 followed by a 3 waves bounce to $24.27. After this, Sugar futures dropped below $10.13 in 5 waves and started bouncing. Cycle from $24.27 low ended at $9.91 and Sugar is now in a bounce to correct the decline from $24.27 peak. As bounces fail below $24.27 high, Elliott wave sequence calls for Sugar futures to make another swing lower below $9.91 to complete 7 swings or a double zigzag structure lower from $36.08 peak.

 

[Elliottwave-Forecast]

Elliott wave view in General Electric (ticker symbol: $GE) suggests that the rally from December 11.2018 low ($6.66) is unfolding as Elliott wave zigzag structure when the first leg of a bounce ended in lesser degree 5 waves structure in wave A at $9.25 high. Down from there, wave B ended 3 wave pullback at $8.56 low. Zigzag (5-3-5) is a combination of 3 waves corrective sequence labeled as A, B, C. The inner sub-division of wave A & wave C consists of 5 waves structure either as impulse or a diagonal. While wave B can be any 3 wave corrective sequence.

Up from $8.56 low, wave C is unfolding in another 5 waves structure where lesser degree wave ((i)) ended at $9.21 high. Wave ((ii)) pullback ended in lesser degree zigzag structure at $8.65 low. Wave ((iii)), also unfolded in lesser degree 5 waves & ended at $10.77 high. Below from there, wave ((iv)) pullback ended at $9.92 low. Wave ((v)) remain in progress in lesser degree 5 waves structure and should be looking to extend higher 1 more push towards $11.15-$12.76 100%-161.8% Fibonacci extension area of A-B before ending the wave C of a zigzag structure in a bigger wave (4). Afterwards, General Electric is expected to resume the downside or should do a 3 wave pullback at least. Near-term, as far as the pivot from $8.65 low stays intact expect stock to extend higher.

General Electric 1 Hour Elliott Wave Chart

 

[Elliottwave-Forecast]

FTSE short-term Elliott wave view suggests that a rally from 12/27/2018 low (6536.53) is unfolding as a zigzag structure where initial rally to 7001.94 high ended wave A in 5 waves structure. Down from there, wave B unfolded as a Flat correction where wave ((a)) ended at 6841.74 low. Wave ((b)) bounce ended at 6987.93 high in lesser degree flat correction. Wave ((c)) ended in lesser degree 5 waves at 6732.33 low, which also completed wave B pullback. After reaching the blue box area at 6785.66-6658.34 100%-161.8% Fibonacci extension area of ((a))-((b)).

Up from there, wave C remain in progress as impulse structure where wave ((i)) ended at 6994.88 high. Wave ((ii)) pullback ended at 6945.05 low and ((iii)) remain in progress looking for more upside towards 7191.16-7473.95 100%-161.8% Fibonacci extension area of wave A-B to reach the extreme from 12/27/2018 low. Afterwards, index is expected to resume the downside or should do a 3 wave pullback at least. Near-term cycle from 12/27/2018 low is mature already with a minimum number of swings in place but as far as a pivot from 6732.33 low expect index to extend higher.

FTSE 1 Hour Elliott Wave Chart

 

[Elliottwave-Forecast]

The Energy Sector ETF, XLE, remains bullish in the near term. From the lows of $53.25 on 12/24/2018 we are charting a zigzag Elliott wave pattern. The target to the upside is $72.25 while the $61.30 low of 1/23/2019 holds.

The Model of the Elliott Wave Pattern




ZigZag patterns always subdivide into three waves. In the chart above these waves are labeled (A) - (B) - (C). Waves (A) and (C) always subdivide or downgrade into an impulsive 5 wave structure or a motive diagonal structure. Wave (B) can subdivide into any corrective structure, but must never move beyond the origin of the entire structure. Or, in other words, wave (B) cannot go below the start of the (A) wave in the chart above.

It is common to see the length of wave (A) in a zigzag equal to the length of wave (C). We call this relationsip a measured move or equal legs. Moreover we are using this common property of the zigzag structure to project a near term high in XLE.

Current 4Hr Chart of XLE


Using the same guidelines for the typical zigzag model we are now projecting an end to the current rally in XLE. With a typical relationship between waves (A) and (C) to be equal a trader can target a near term top in XLE at $72.25. The critical factor for this analysis to hold is prices remaining above the (B) wave low. So, while above $61.30 we're looking for 5 subdivisions in (C) to the upside to reach our target.

To Your Success!

James

EWF Analytical Team

 

[Elliottwave-Forecast]

Shopify (NYSE:SHOP) is an electronic commerce company offering online stores and retail point of sale platform designed for small and medium-sized businesses. Merchants can design, set up and manage their shops using a single interface which make is an easy and attractive way to start up a business in few clicks.

E-commerce industry been around for almost 3 decades, but the recent 10 years saw a significant growth and with new technologies it took it to the next level which has transformed the processes of buying and selling goods.

Shopify have been in business for 14 years and become one of the leaders in providing e-commerce services. The company has not taken on any debt in the past 5 years and has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 47.1% each year.

Shopify Future Revenue and Net Income


Based on the the current data for Shopify, its earnings and revenue are expected to grow significantly at over 20% yearly putting a solid case for investors to keep it for the future. Its stock (NYSE:SHOP) yearly return outperformed the Information Technology sector and the US Market since the IPO.

Let's now switch to the technical aspect of SHOP chart with the guidance of Elliott Wave Theory to understand the future path:

Shopify Weekly Elliott Wave Chart


Since IPO, the stock price advanced higher in a classical 5 waves move which design a bullish trend. Therefore, based on the Elliott wave theory, the stock will do another similar 5 waves move in the same direction after a 3 , 7 or 11 swings pullback against the trend.

That's exactly what's taking place, SHOP ended the cycle last year as a first leg wave (I) then corrected lower in what appears to be a bullish flag pattern in wave (II) and now the stock is in the process of resuming the main trend by making new all time highs.

The break to the upside is significant in 2 ways: A break of a bullish continuation pattern and more importantly a possible start of a third wave higher which represent the strongest wave in the Elliott wave theory. The minimum measured target for the move is at the 100% Fibonacci extension $275 and the 161.8% comes at $375.

Consequently, Shopify is expected to remain supported above December 2018 low $117 and buyers will be looking for pullbacks in 3 , 7 or 11 swings to enter the market which makes the stock bullish for 2019.

 

[Elliottwave-Forecast]

BP Cycles and Elliott Wave from February 2016

Firstly I would like to mention the data I have on the BP stock goes back to around 1968 when prices were ranging around in between 1 & 2 dollars. The stock price rose until the November 2007 highs. There it ended a cycle up from the all time lows. From there a sharp pull back lower in price was seen until the June 2010 lows. The point of this is to point out technically why the stock may see some pain before resuming an uptrend.

Secondly from there the bounce into the January 2011 high effectively ended a pullback cycle. That corrected the move up from the all time lows. From that January 2011 high price appears to have been an Elliott Wave flat structure that subdivides as 3-3-5. This remained above the June 2010 lows and ended on February 11, 2016. That is where the analysis starts on the daily chart shown below.

The analysis continues below the daily chart.

BP Daily Chart



Thirdly I will remind the 2016 lows did remain above the 2010 lows. That in itself will create a degree of bullishness as far as technically speaking. The bounce from the February 2016 lows is not the prettiest wave structure I ever saw however it appears to be an impulse. This cycle ended on May 21, 2018. The pullback lower from there in the blue (W) is actually enough to be a complete three swing correction against the uptrend from 2016. I do however have other correlated reasons why it can still see another swing lower before resuming higher.

In conclusion. The correlated market in Crude Oil appears it can see some further weakness to correct the cycle up from the 2016 lows. A strong possibility exists for a broader indices market selloff again as well. This Fibonacci extension area highlighted on the chart may still be seen before a pullback lower again. From that area, at a minimum it should at least correct the cycle up from the December 26, 2018 lows before a sustained move higher again.

Thanks for looking.

Kind regards & good luck trading.

Lewis Jones

 

[Elliottwave-Forecast]

Recall in our previous article we said U.S. Indices, specifically S&P 500 E-Mini Futures (ES_F), likely won't break last year's high yet. From the technical side, the chart below shows why the current level around 2700 presents a formidable resistance.



From the fundamental side, we have a slew of headwinds which can impede the current rally. The Fed still remains in quantitative tightening (QT) mode to normalize its balance sheet. The Fed is now at the maximum pace of $50B tightening per month. If QE (Quantitative Easing) is a tailwind for stocks, then logically QT should be a headwind for stocks. As the flow of QT increases to maximum pace, the pressure and volatility in the stock market can also start to increase.



Then there's the risk of U.S and China's trade war. Both countries have slapped tariffs against each other's goods since last year. Although both sides remain in negotiation, failure to reach a settlement by March deadline can see US increases the tariffs on $200 billion worth of Chinese goods from 10% to 25%. Deep divisions on both sides remain on the issues of intellectual property and forced technology transfer. A research by Washington-based consultancy Trade Partnership Worldwide suggests almost 1 million American jobs are at risk with the current trade war with China and other countries. In addition, should US push ahead and increase tariffs to 25% to Chinese goods, the same study predicts more than 2 million American jobs can be affected.

Last but not least, there's also a threat of another U.S. partial government shutdown due to Trump's wall funding issue. The White House had asked for $5.7 billion, and the Democratic-controlled House rejected it. The White House said it has not ruled out another federal government shutdown this Friday if they still can't reach a deal by then. Congressional Budget Office (CBO) said the last 5 week shutdown will make the US economy 0.02% smaller in 2019. If another extended shutdown happens, it will further affect the US economy.

ES_F 4 Hour chart 10 February 2019


S&P 500 E-Mini Futures chart above shows the Index breaking below the parallel channel. This suggests a potential that the cycle from Dec 25, 2018 low has ended. In the shorter cycle, there is yet not enough separation from last week's high at 2739.3 to be comfortable with this idea. However, the break below the channel is an early indication that we may have formed the secondary high in the ES_F. As such, while the rally fails below 2739.3, but more importantly below last year's high at 2947, the Index can either resume lower or pullback in 3 waves at least. If the Index breaks above 2739.3 then it still remains in the process of forming the secondary high, i.e. wave ((X)). However, even if it breaks above 2739.3, the Index is likely not going to break above 2947 without at least a significant 3 waves pullback first.

Keep in mind that market is dynamic and the view above may change from the time that the article was written.

 

[Elliottwave-Forecast]

$IBM Long Term Bullish Trend and Elliott Wave Cycles

Firstly I would like to mention Big Blue has been around for over 100 years since it was founded. I have price data that goes back to the 1960's when the stock price was around three dollars. The point of this article is to show what Elliott Wave technical analysis suggests will happen before the stock price resumes the larger uptrend.

Secondly from the early beginnings of the company up to the March 2013 highs was simply a series of higher highs and higher lows. The weekly chart shown below is where this wave analysis begins. This decline appears to be a zig zag Elliott wave corrective structure. These structures subdivide into what wave analysts call a 5-3-5 structure. This means the first cycle ((A)) lower from the March 2013 highs to the February 2016 lows was a five wave impulse. This impulse had some overlap in between the wave (1) and wave (4). Thus it would be considered a diagonal. The bounce in the ((B)) wave connector subdivides into three corrective swings.

The analysis continues below the weekly chart.

IBM Weekly Chart



Thirdly from the February 2017 ((B)) highs price has declined in two smaller degree blue (1) & (3) impulse waves. By all means, this is an incomplete larger degree black ((C)) impulse. Currently the wave (4) in blue is correcting the cycle lower from the wave (2) highs. Momentum indicators like RSI should ideally continue showing a lower reading in the wave (4) when compared to the wave (2). Considering the previous impulse wave ((A)) diagonal had some overlap between the wave (1) & (4) it could happen again in the current wave (4) of ((C)). This not a rule requirement. As of right now it appears it may turn back lower without any overlap.

In conclusion as earlier mentioned the sequence lower from February 2017 is incomplete. It is only missing another swing lower under 105.94, the 12/24/18 lows in the impulse ((C)) to finish the zig zag structure. Highlighted on the chart is an ideal area price can reach before resuming the larger uptrend.

Thanks for looking.

Kind regards & good luck trading.

Lewis Jones

 

[Elliottwave-Forecast]

GBPUSD short-term Elliott wave view suggests that the rally to 1.322 on Jan 26, 2019 ended wave ((X)). Decline from there is unfolding as a 5 waves impulse Elliott Wave structure. Down from 1.322, wave (i) ended at 1.3053, wave (ii) ended at 1.316, wave (iii) ended at 1.2853 and wave (iv) ended at 1.2997. Subdivision of wave (i), (iii), and (v) are also impulse 5 waves in lesser degree. Currently, wave (v) is in progress towards 1.271 - 1.282 area before pair ends cycle from Jan 26, 2019 high.

The 5 waves lower from Jan 26 high will end either wave ((i)) or wave ((a)) of larger Elliott Wave degree. Pair should then bounce in wave ((ii)) or ((b)) to correct cycle from Jan 26 high in 3, 7, or 11 swing before the next leg lower. As far as pivot at 1.322 high stays intact, expect rally to fail and pair to extend lower at least another leg lower. We do not like buying or fading the 5 waves move lower as the impulsive move can always extend to the downside further. A break above the parallel channel can be the first indication that wave ((i)) is complete.

GBPUSD 1 Hour Elliott Wave Chart

 

[Elliottwave-Forecast]

Hello fellow traders. I want to share with you some Elliott Wave charts of EURGBP which we presented to our members at Elliott Wave Forecast. You see the 4-hour updated chart presented to our clients on the 01/26/19 below

EURGBP unfolded as an Elliott Wave Zig-Zag structure from 01/02/19 peak. Decline from there ended black wave ((a)) at 0.88768 and wave ((b)) bounce ended at 0.89840. Black wave ((c)) of red wave W should end soon as it has reached our blue box area. This area comes at 0.87477-0.86019, which is 100% - 161.8% Fibonacci extension from black ((a))-((b)). Pair should rally in the sequences of 3-7 or 11 swings to correct the cycle from 01/02/19 peak.

EURGBP 01.26.2019 4 Hour Chart Elliott Wave Analysis




In the Elliott Wave chart update below, you can see that black wave ((c)) of red wave W ended at around 0.86153 low. Above from there, it started the expected bounce in red wave X. Due to the right side tag against 0.91161 peak and the bearish sequence tag, we advised members that selling EURGBP in the sequences of 3-7 or 11 swings will be the idea to go. Please keep in mind that the 4-hour charts which I presented can have changed already. The purpose of this blog is just to illustrate how accurate our blue boxes are. Our members can use the blue box and right side stamp and buy/sell correction in 3-7 or 11 swings.



EURGBP 02.06.2019 4 Hour Chart Elliott Wave Analysis




I hope you like this blog and I wish you all the best.

 

[Elliottwave-Forecast]

In this technical blog, we are going to take a look at the past performance of Alibaba ticker symbol: $BABA 4-Hour Elliott Wave Charts that we presented to our members. In which, the stock made a 3 wave recovery higher as Elliott wave Flat structure from 10/30/2018 low ($130.06). We will explain the structure & forecast below.

Alibaba 4 Hour Elliott Wave Chart From 1/28/2019


Above is the 4-hour Chart from 1/28/2019 update, in which a decline to $130.06 low ended wave "(w)" as zigzag structure. Above from there, the stock made a 3 wave bounce higher as a zigzag structure where wave ((A)) ended at $160.98 high. Wave ((B)) pullback ended at $139.97 low. Wave ((C)) ended at $169 high and also completed wave "a" of a Flat structure. Down from there, the stock made a 3 wave pullback & went on to make new low below ($130.06) in wave "b" lower. The internals of that decline unfolded as zigzag structure where wave ((A)) ended at $150.51 low. Wave ((B)) bounce ended at $158.05 high. Wave ((C)) ended at $128.91 low and also completed wave "b" lower.

Up from there, the stock started the wave "c" higher with lesser degree cycles showing 5 waves impulse structure. When wave ((1)) ended at $142.51 high, wave ((2)) ended at $129.83 low. Wave ((3)) ended at $159.49 high and wave ((4)) ended at $150.21 low. Above from there, wave ((5)) was expected to extend higher towards $163.60-$171.92 area approximately before ending the Flat correction from 10/30/2018 low in wave "(x)" & turning lower again.

Alibaba 4 Hour Chart From 2/07/2019


Alibaba 4 hour Chart from 2/07/2019 update, in which the stock took the extension higher in wave (5) & completed the expanded Flat correction at $173.23 high. It's important to note that, we have adjusted the degree of the bounce slightly by downgrading it based on our distribution system. But the Overall Forecast remains the same. While bounces fail below $173.23 high the stock is expected to resume the downside based on incomplete sequence coming from 6/5/2018 peak with extra swing low in placed at 12/24/2018 low ($129.77) favors more downside, which we have explained in our previous article here. Below is the Daily Chart from 2/8/2019 showing an incomplete sequence from 6/5/2018 peak & extra swing low. If $173.23 high breaks, then we should still be in wave wave (5) of ((C)) of "x".

Alibaba Incomplete Sequence From 6/5/2018


Keep in mind that the market is dynamic and the view could change in the meantime. Success in trading requires proper risk and money management as well as an understanding of Elliott Wave theory, cycle analysis, and correlation.

 

[Elliottwave-Forecast]

Short-term Elliott wave view in Nikkei suggests that the Index has ended correction at 20169 as wave ((X)) and starts a new leg higher. Decline to 20169 on 8 February took the form of an Elliott Wave Expanded Flat. An Elliott Wave Flat structure has an ABC label with subdivision of 3-3-5. We can see from the 1 hour chart wave (B) of this FLAT ended at 20970 and wave (C) ended at 20169. Subdivision of wave (C) unfolded as a 5 waves Impulse Elliott Wave structure. Down from 20970, wave 1 ended at 20815, and wave 2 ended at 20895. Wave 3 ended at 20270, wave 4 ended at 20370, and wave 5 ended at 20169.

The Index has since rallied and broke above the previous high on February 5th, suggesting the next leg higher has started. Rally from Feb 9th low (20169) is unfolding as a 5 waves Impulse structure. Up from 20169, wave 1 ended at 20480 and wave 2 ended at 20390. Expect a few more legs higher in the Index to end the 5 waves up. Afterwards, it should pullback to correct the cycle from Feb 9 low within wave (B) in 3, 7, or 11 swing. As far as pullback stays above 20390 low, expect the Index to extend higher. We don't like selling the Index.

Nikkei 1 Hour Elliott Wave Chart

 

[Elliottwave-Forecast]

Elliott wave view in Gold suggests that rally from August 16, 2018 low ($1160.37) is unfolding as an Elliott Wave Impulse structure. Rally to $1326.53 ended wave (3). Wave (4) pullback is in progress as a double three Elliott Wave structure. Down from $1326.53, wave W ended at $1302.4 and wave X ended at $1318.17. Internal of wave W takes the form of a zigzag Elliott Wave structure. Wave ((a)) of W ended at $1308.40, wave ((b)) of W ended at $1316.9, and wave ((c)) of W ended at $1302.40.

Internal of wave X takes the form of a double three Elliott Wave of a lesser degree. Wave ((w)) of X ended at $1315.63, wave ((x)) of X ended at $1303.4, and wave ((y)) of X ended at $1318.17. Wave Y is proposed to take the form of a zigzag Elliottwave structure where wave ((a)) ended at $1304.90. Near term, while wave ((b)) bounce stays below $1326.53, expect another leg lower to $1288.28 - $1293.98 in wave ((c)). This move lower should also end wave Y of (4). Expect buyers should appear in this area for new high in wave (5) or at least a 3 waves bounce. We do not like selling Gold.

Gold 1 Hour Elliott Wave Chart