Elliott Wave Analysis by EWF

[Elliottwave-Forecast]

One of the best ways to play the silver rally, if one believes in the bullish thesis, is through the Silver Miner ETF (SIL). The share price of these publicly traded mining companies usually climb faster than the precious metals that they produce during the bull market phase of the underlying metal. Since forming a top on August 6, 2020 high at 52.87, Silver Miners ETF (SIL) has continued to consolidate the gain. The internal subdivision of the pullback so far looks corrective, favoring further upside. We analyzed the Elliott Wave Chart of SIL below in Monthly and Daily time frames.

$SIL Monthly Elliott Wave Chart​

Monthly chart of SIL above shows potential basing pattern since Jan 1, 2016 low. The ETF did a retest of that level earlier this year on March 3 during the Covid-19 selloff. We labelled that pullback as wave II which ended at 15.72. Since then the ETF has rallied again. The key resistance at $52 is still holding for now but a clear break above this line can turbocharge the rally in the sector next year. The ETF is currently looking to end the correction to cycle from March low and expected to find support in 3, 7, or 11 swing for more upside.

$SIL Daily Elliott Wave Chart​

Daily Elliott Wave chart of SIL above shows the rally from wave II low on March 1 ended wave ((1)) at $52.87 as an impulsive Elliott Wave structure. Wave ((2)) pullback is in progress to correct cycle from March 1 low before the rally resumes. Structure of wave ((2)) looks corrective and unfolding with a possible double three corrective Elliott Wave pattern. Down from wave ((1)) high, wave (W) ended at 40.62 and wave (X) ended at 48.45. Wave (Y) is expected to find support in 3 or 7 swing. The next 100% - 161.8% extension area comes at 26.8 - 36.3 where buyers can appear for new high or 3 waves bounce at least. Expect the ETF to continue higher again in a strong wave ((3)) rally once current correction ends as far as pivot at 16.09 low stays intact.

Source: https://elliottwave-forecast.com/stock-market/silver-miners-sil-close-ending-correction/

 

[Elliottwave-Forecast]

Hello fellow traders. 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 is another Forex pair that we have been trading lately. The price is showing impulsive sequences in the cycle from the November 1.1598 low. Consequently, we advised members to avoid selling EURUSD 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.

EURUSD 1 Hour Elliott Wave Analysis 12.09.2020​

Wave ((iv)) black pull back is correcting the cycle from the 1.1802 low. Pull back has already reached its equal legs zone at 1.2067-1.2006 area . As our members know, Equal Legs - Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. We 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. Turn can happen any moment. As soon as the price reach 50 Fibonacci Retracement against the ( red peak, we should make long positions Risk Free ( put SL at BE).

You can learn more about Elliott Wave Patterns and Equal Legs Areas at our Free Elliott Wave Educational Web Page.

EURUSD 1 Hour Elliott Wave Analysis 12.10.2020​

EURUSD found buyers at 1.2067-1.2006 area, the Blue Box area. We got nice reaction from there so far. We call wave ((iv)) pull back completed at 1.2057 low as Double Three Pattern. However we would like to see further extension higher and break above ((iii)) black peak (12/04) to confirm next leg up is in progress. At this stage all the long positions from the Blue Box zone should be risk free.

EURUSD 1 Hour Elliott Wave Analysis 12.14.2020​

Eventually we got further separation higher. The pair is now showing higher high structure within the short term cycle from the 1.2057 low, however still need to see break above 12/04 peak to confirm next leg up is in progress. We don't recommend selling the pair in any proposed pull back and favor staying long from the Blue Box area within risk free positions.

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.



Source: https://elliottwave-forecast.com/trading/eurusd-buying-dips-blue-box-area/
Elliott Wave Forecast

 

[Elliottwave-Forecast]

In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of Advance Micro Devices ticker symbol: AMD. In which, the rally from 02 November 2020 lows, showed the higher high sequence in an impulse structure favored more strength to take place. Also, the right side tag pointed higher & favored more strength. Therefore, we advised our members to buy the dips in AMD in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

AMD 1 Hour Elliott Wave Chart​

Above is the 1 hour Elliott Wave chart of AMD from the 12/10/2020 Pre-Market update. In which, the rally from 11/11/2020 low unfolded as an impulse sequence & ended wave 3 at $96.37 high. Down from there, the stock made a 3 swings pullback to correct that cycle in wave 4. The internals of that pullback unfolded as Elliott wave flat structure where wave ((a)) ended at $90.63 low. Wave ((b)) bounce ended at $95.75 high. Below from there, wave ((c)) unfolded as 5 wave structure & managed to reach the 100%-161.8% Fibonacci extension area of ((a))-((b)) at $90.12-$86.60 blue box area. From where buyers were expected to appear looking for more upside or for a 3 wave bounce at least.

AMD 1 Hour Elliott Wave Chart​

Here's the latest 1 hour Elliott Wave Chart of AMD from 12/16/2020 Post-Market update. Showing a strong reaction higher from the blue box area. Allowed longs to get into a risk-free position shortly after the long positions at $90.12-$86.60 blue box area.

Source: https://elliottwave-forecast.com/stock-market/amd-resuming-higher-ending-flat-correction/

 

[Elliottwave-Forecast]

Arcimoto off the March 2020 low has been on an amazing rally. With the stock price rallying from $1 to $20, it has enjoyed a 2000% gain in under a year. Arcimoto is an electric vehicle company headquartered in Eugene, Oregon. Arcimoto manufactures and sells the Fun Utility Vehicle, or FUV, a tandem two-seat, three-wheeled electric vehicle. They also sell van-variations on the design "Rapid Responder" for emergency services, and "Deliverator" for last-mile deliveries.

The chart is pretty clean, lets take a look at the price action since the March 2020 low.

Arcimoto Elliottwave View:​

Medium term term view from the low set in March of 2020 is that this instrument is in the process of forming a large 5 wave impulse. March low to July ((1)) peak is showing a 5 waves advance, then consolidation into the ((2)) low set at 4.68 on Sep 4 2020. After there, a choppy Blue (1) took place, and Blue (2) set on October 30 at a price of 5.10. After that, a beautiful wave 3 impulse took hold, propelling the stock from the 5.10 low, to a high of 20.20 on Nov 20, 2020. It has since retreated back to a low of 10.75 on Dec 2/2020, which is favoured to be the Blue (4) low.

It has an incomplete bullish sequence to the upside. This means that further upside is likely to take place, before a larger degree correction in Red II is favourable. As long as prices remain above 4.68, at least one more high is favoured to take place to meet the minimum number of swings for a bullish sequence. Preferably, 2 more highs in ((3)) and ((5)) are favoured.

Risk Management​

Using proper risk management is absolutely essential when trading or investing in a volatile stocks. Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading.

Source: https://elliottwave-forecast.com/stock-market/arcimoto-fuv-bullish-trend-intact/

 

[Elliottwave-Forecast]

Rally in Oil (CL) from Nov 2 low is unfolding as 5 waves impulsive Elliott Wave structure. In the 60 minutes chart below, we can see wave 3 of this impulse ended at 47.74. Wave 4 pullback then ended at 45.69. Internal subdivision of wave 4 unfolded as a zigzag where wave ((a)) ended at 46.34, wave ((b)) ended at 47.44, and wave ((c)) ended at 45.69.

Wave 5 is now in progress and should subdivide in another 5 waves in lesser degree. Up from wave 4 low at 45.69, wave (i) ended at 47.07, and pullback in wave (ii) ended at 46.54. Oil then resumes higher again in wave (iii) towards 47.73, and dips in wave (iv) ended at 47.28. Final leg higher in wave (v) ended at 47.91 and this should complete wave ((i)) in higher degree. Oil then pullback in wave ((ii)) which already ended at 47.17. Near term, while pullback stays above 47.17, and more importantly above 44.96, expect Oil to extend higher. As far as pivot at 44.96 low remains intact, expect buyers to appear in 3, 7, or 11 swing for further upside. Potential target higher is 100% - 123.6% Fibonacci extension of ((i))-((ii)) which comes at 49.4 - 49.9.

Oil (CL) 60 Minutes Elliott Wave Chart​

Source: https://elliottwave-forecast.com/commodities/elliott-wave-view-oil-cl-impulsive-rally-in-progress/​

 

[Elliottwave-Forecast]

Another instrument that we have been trading lately is Bitcoin ( $BTCUSD ) cryptocurrency from Group 2. In this technical blog we’re going to take a quick look at the Elliott Wave charts of BTCUSD, published in members area of the website. As our members know, BTCUSD has been showing incomplete impulsive sequences from the September 9834.4 low. Consequently we were calling for more strength in the Bitcoin, suggesting members to avoid selling it and keep buying the dips in 3,7,11 swings whenever get chance. In further text we’re going to explain Elliott Wave Forecast and Trading strategy.

BTCUSD 1 Hour Elliott Wave Analysis 12.8.2020​

BTCUSD is bullish against the 16257.9 low in first degree. Cryptocurrency is giving us pull back wave 2 red that looks incomplete at this stage. We expect to see another leg down toward 17830.15-16725.87 ( buyers zone). From marked Blue Box area area we expect rally to take us toward new all-time highs ideally. As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. We don’t recommend selling it. Strategy is buying the dips at the proposed blue box area.

BTCUSD 1 Hour Elliott Wave Analysis 12.11.2020​

We got another leg down toward blue box area. With latest movement Count has been changed from Double Three to Zig Zag as it better fits with the current price action. Bitcoin is showing some reactions from the blue box band we see possibility wave 2 red is already done at 17686 low. However we would like to see further separation from the current short term low and ideally to see break above 1 red peak( 12/1) in order to confirm next leg up is in progress. We don’t recommend selling BTCU in any proposed pull back and favor the long side from the blue box. As the main trend is bullish, we should get 3 wave bounce at least from the Blue Box buyers zone.

BTCUSD 1 Hour Elliott Wave Analysis 12.21.2020​

17686 low held nicely during the short term pull back and we got further rally toward new all-time highs as expected. BITCOIN broke 12/1 peak confirming next leg up is in progress. BTCUSD remains now bullish against the 12.21 low in first degree. As far as mentioned pivot holds, we expect pull backs to keep finding buyers in 3,7,11 swings.

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



Source: https://elliottwave-forecast.com/trading/bitcoin-btcusd-buying-dips-blue-box-area/
Elliott Wave Forecast

 

[Elliottwave-Forecast]

The EV sector has has a very lucrative 2020. Xiaopeng stock has risen from a low of 17.11 to a peak of 78.00 and seems to be correcting the cycle from the all time low. This chart has lots of potential for future gains. Lets take a look at the company profile below:

“Xpeng was co-founded in 2014 by Henry Xia (Xia Heng) and He Tao, former senior executives at GAC Group with expertise in automotive technology and research and development. Initial backers included: the founder of UCWeb and former Alibaba executive He Xiaopeng (now Chairman of Xpeng), and Lei Jun, the founder of Xiaomi. Prominent Chinese and international investors included Alibaba, Foxconn and IDG Capital. A further funding round in 2018 saw Alibaba's vice president Joseph Tsai join the corporate board of Xpeng.

Xpeng's subsidiary in the United States, XMotors.ai held a permit for testing self-driving cars from the California Department of Motor Vehicles starting in September 2018. The permit was revoked in February 2020 due to Xpeng's failure to submit a disengagement report.

Xpeng started production of its first model, the Xpeng G3 SUV, in November 2018. It launched the G3 in December 2018 at the 2018 Consumer Electronics Show in Las Vegas.

Its second model, the P7, a four-door electric sedan, premiered in April 2019 at the 2019 Auto Shanghai show and started deliveries to customers in June 2020."

Although there is not much data on the chart from the IPO, I believe there is enough to analyze the Medium term view, lets dig in!

Xiaopeng Elliottwave View:​

Medium term term view from the all time low in September 2020. There is a 5 waves impulse that peaked on 11/22/2020 @ a high of 78.00. This peak comes with divergence in momentum RSI. This is a common occurrence with impulsive waves. After Red I peaked, the stock has been in a steady downtrend ever since. The low in black ((W)) never reached equal leg of blue (A) and (B). It did find a low between the 50% to 61.8% retrace of the all time low to the recent high. This is an area where a wave 2 can find support. It is possible that Red II is already set, but since prices did not reach equal leg. So further downside in a double correct may take place. Currently, expecting a Blue (C) of ((X)) to take place before further downside.

In Conclusion, this stock has the possibility of already setting a low in Red II. Take not that the momentum has been strong to the upside. However, allowing for further downside in the possibility of a double correction is still possible.

Risk Management​

Using proper risk management is absolutely essential when trading or investing in a volatile stocks. Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading.

Source: https://elliottwave-forecast.com/stock-market/xiaopeng-motors-xpev-correcting-larger-cycle/

 

[Elliottwave-Forecast]

Many times, we hear in the argot of technical analysis the term "Equal Legs", which sounds very strange and does not make sense to the world of finance. However, this term is especially important when making a forecast of the future movements of the different market instruments, because when the market reaches the equal legs, it has a high probability that the market will correct or change trend.

Looking for Equal Legs​

Equal legs are simply the 100% Fibonacci extension, where wave A and wave B are taken to find a possible ending of wave C. The problem lies in correctly identifying A and B, being A and B any type of valid structure according to the Elliott Wave rules. To learn more about Elliott Wave Theory, follow this link: Elliott Wave Theory). Let's see some examples:

In this first example we can see Wheat on the weekly chart with a two years ABC structure. Upon reaching 100% Fibonacci, the market reacts downwards making a correction and then continue with the trend.



In the second example we have the Australian Index weekly chart where the market reached the equal legs just before the bearish movement due to the coronavirus pandemic. It should be noted that the equal legs should not be perfect, but a close level as we have seen so far.



And finally, in this third example we have the GBPAUD where we see a 100% perfect extension to then continue to the downside.



Source: https://elliottwave-forecast.com/elliottwave/equal-legs-elliotts-wave-theory/

 

[Elliottwave-Forecast]

AstraZeneca is a British-Swedish multinational pharmaceutical and biopharmaceutical company. Founded in 1999 and headquartered in Cambridge, UK, it is a merger of the Swedish Astra AB and British Zeneca Group. Astrazeneca is a part of FTSE100 index. Investors can trade it under the ticker $AZN at London Stock Exchange and also under $AZN at NASDAQ. The company has a portfolio of products for such disease areas like cancer, gastrointestinal, cardiovascular, inflammation, respiratory and infection. Besides the engagegement in these areas, in recent weeks Astrazeneca has attracted a strong attention as one of the suppliers of vaccines to fight against COVID-19. Will this involvement promote the stock price to the new highs?

AstraZeneca Monthly Elliott Wave Analysis 12.28.2020​

The monthly chart below shows the Astrazeneca stock $AZN traded at Nasdaq. From the all-time lows, the stock price is showing Elliott wave motive wave patterns. Firstly, the cycle up in black wave ((I)) of grand super cycle degree has ended by printing its top in September 2000 at 26.63. After 5 waves higher in ((I)), the correction lower in 3 swings of wave ((II)) lower has ended in September 2002 at 14.00.

Secondly, from the 2002 lows, a new motive cycle higher in black wave ((III)) is in progress. Hereby, the advance towards January 2020 highs at 51.55 is a leading diagonal structure within blue wave (I). To be noted: a sharp pullback of only 2 months towards March 2020 lows in wave (II) has corrected the entire cycle cycle higher of almost 18 years long. As a matter of fact, it has printed an important bottom at 36.15.

AstraZeneca Daily Elliott Wave Analysis 12.28.2020​

The daily chart below shows in more detail the price action from the March 2020 lows at 36.15. First, an impulse within a wave I has ended in July 2002 at 64.94. Hereby, it has broken to the new all-time highs confirming the blue wave (III) to be in progress. From the top, a correction in wave II is unfolding as a double three structure. It should reach lower in 7 swings towards 42.90-39.30 area. From there, wave III of (III) should resume the rally to new highs.

Therefore, the blue box area 42.90-39.30 is a great opportunity to enter the market at a good price. Buyers should be waiting there. From the extremes, the AstraZeneca stock should accelerate in the red wave III towards 64.94 and higher or should bounce in 3 waves at least. The target for blue wave (III) will be 73.74-96.97 area.



Source: https://elliottwave-forecast.com/stock-market/azn-covid-vaccine-propulse-astrazeneca/

 

[Elliottwave-Forecast]

E.ON SE is a German electric utility company and by revenue one of the largest electric utility providers in the world. Created in 2000 through the merger of VEBA and VIAG and headquartered in Essen, Germany, the company operates in over 30 countries worldwide. E.ON is a part of both DAX30 and of SX5E indices. Even though the stock is considered as a highly attractive, the stock price has seen better times. As a matter of fact, it has not recovered after a strong decline from the all-time highs in 2008 at 44.10.

Now, a closer look on the price action of the stock provides insights on the further development. Indeed, from November 2016 lows one can observe already a second nest forming. Consequently, a strong rally higher should happen soon.

E.ON Monthly Elliott Wave Analysis 12.28.2020​

The monthly chart below shows the E.ON stock $EOAN traded at XETRA. From the all-time lows, the stock price has developed a cycle higher in black wave ((I)) of grand super cycle degree towards the all-time highs on January 2008 at 44.10. From the highs, a correction lower in black wave ((II)) has unfolded as an Elliott wave zigzag pattern. It has printed an important bottom on November 2016 at 5.99. From November 2012 lows, a new cycle in wave ((III)) has already started and should extend towards 44.10 highs and even higher.

A closer look on the price action from 2012 unveals the development of a base in price. Such basing - or nesting - action is usually a precursor for a following rally. From the 5.99 lows, E.ON demonstrates an advance in a red I wave towards November 2017 highs at 10.81. From there, a correction has unfolded as an expanded flat structure in wave II. The consolidation has ended in March 2020 at 7.60. While above there, E.ON should be already within wave III towards 10.81 highs and even higher. A target fo wave III will be 12.37-15.34 area.

E.ON Daily Elliott Wave Analysis 12.28.2020​

The daily chart below shows in more detail the first stages of the advance higher in wave III. From the March 2020 lows at 7.60, another nest is almost finished and another advance should happen soon. Hereby, blue wave (1) has developed a leading diagonal higher towards July 2020 highs at 10.81.

From the July 2020 highs, a double correction lower in wave (2) is in progress and should reach within red wave Y of blue wave (2) towards 8.338-7.976 area. There, one should be expecting the price to turn up again towards 10.81 and even higher.

Without any doubt, current stock price at 8.96 Euro does possess a high attractivity for investors. While above 7.60 lows, investors can anticipate E.ON to break above 10.81 targeting 12.37-15.34 area. In a long run, E.ON should extend to the new all-time highs above 44.10.



Source: https://elliottwave-forecast.com/stock-market/eon-looking-towards-strong-rally/

 

[Elliottwave-Forecast]

Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of Copper Futures ( $HG_F) published in members area of the Elliottwave-Forecast . As our members know, Copper is showing higher high sequences in the cycle from the March low ( 19720). Consequently , we recommended our members to avoid selling Copper in any pull back and keep on buying the dips in 3,7,11 swings whenever get chance. Recently we got short term pull back that has unfolded as Elliott Wave Double Three pattern. In further text we’re going to explain the forecast and Elliott Wave Pattern and trading strategy.

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

Elliott Wave Double Three Pattern​

Double three is the most important and common pattern in the market these days, also known as 7 swing structure.

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

Copper 1 Hour Elliott Wave Analysis 12.22.2020​

Copper Short term pull back is unfolding as Elliott Wave double three pattern with inner labeling: ((w))((x))((y)) black. Each leg of the pull back has corrective structure. Pull back has incomplete sequences at the moment. Due to lower low structure we call for more short term weakness toward 3.4930-3.4695 area ( blue box- buyers zone) .We don’t recommend selling it. Strategy is buying the dips at the marked blue box area. As Copper is bullish against the 3.0337 low, we expect to see 3 waves bounce at least from the mentioned zone. As soon as the price reach 50 Fibonacci Retracement against the ((x)) black peak (3.5928), we should make long positions Risk Free ( put SL at BE).

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

Copper 1 Hour Elliott Wave Analysis 12.23.2020​

Copper made proposed extension down and reached buyers zone. At this moment we can count clear 7 swings down from the peak, when pull back 4 red ended at 2.4782 low as Elliott Wave Double Three Pattern. Copper found buyers at blue box: 3.4930-3.4695 area . The bounce already reached 50 fibs against the ((x)) high, so all long positions should be risk free at this stage. Current view suggests we can be ending short term cycle from the 3.478 low as ((i)) black. We expect to see 3 waves pull back ((ii)) black, and further rally.

Copper 1 Hour Elliott Wave Analysis 12.28.2020​

Eventually we got 3 waves pull back in ((ii)) and further rally as expected. Now we would like to see break above 3 red in order to confirm next leg up is in progress.

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.



Source: https://elliottwave-forecast.com/elliottwave/copper-hg_f-buying-elliott-wave/

 

[Elliottwave-Forecast]

The EV sector has been on fire in 2020 and Li Auto has been no different. Li Auto stock has risen from a low of 14.31 to a peak of 49.26 and appears to be close to completing the correction against the all time low. This chart has lots of potential for future gains. Lets take a look at the company profile below:

“Li Auto was founded in 2015 by CEO and Chairman Li Xiang, for whom it's named. The company is backed by China's largest consumer services app Meituan and Bytedance, which owns short-video app TikTok.

Unlike most other electric vehicle makers, Li Auto specializes in plug-in hybrid vehicles (PHEVs), which can be powered by either gasoline or electricity. The hybrid powertrain compensates for China's sparse EV-charging infrastructure and serves as a better gateway for weaning consumers off of petrol-powered cars. Since shipping its first model in late 2019, the company sold around 10,000 units.

Li Auto has vehicle manufacturing, engineering, and design services located in Changzhou, Jiangsu Province with corporate headquarters and research and development located in Beijing.

Li Auto raised $1.1 billion in an IPO on Nasdaq on July 30, 2020, valuing the five-year-old electric vehicle maker at around $10 billion. The Beijing-based firm was part of a wave of Chinese EV manufacturers joining the American stock market. The merger came at a time when Chinese stocks are facing greater scrutiny in the U.S.”



Lets dig into the charts!

Li Auto Elliottwave View:​

Medium term term view from the all time low in August 2020. There is a 5 waves impulse that peaked on 11/24/2020 @ a high of 49.26. This peak comes with divergence in momentum RSI. This is a common occurrence with impulsive waves, and is a good indication of a move that is close to completion. After Red I peaked, the stock has been in a steady downtrend and has managed to already reach the 61.8% retrace.

Normally we like to look for an extreme area where buyers may enter for a bounce. Since this correction has gone so deep in the ((W)) wave the extreme area is not feasible to use. Instead, we can keep an eye on the 61.8 retrace as an area that a bottom may occur. Currently, one more low take place. With this said, the bottom can be set already, if momentum starts to pick up and confirm the low.

In Conclusion, this stock has the possibility of already setting a low in Red II. However, we are keeping the possibility open for one more low.

Risk Management​

Using proper risk management is absolutely essential when trading or investing in a volatile stocks. Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading.

Source: https://elliottwave-forecast.com/stock-market/li-auto-li-correction-coming-close/

 

[Elliottwave-Forecast]

In this technical blog, we are going to take a look at the past performance of the Bitcoin ticker symbol: $BTCUSD 1-Hour Elliott wave Charts that we presented to our members. In which, the Bitcoin made new all-time highs. While the rally from 21 December 2020 low showed an impulse structure with the right side up called for more upside to take place. Therefore, our members knew that buying the dips into the direction of the bullish tag remained the preferred path. We will explain the Elliott wave structure & buying opportunity our members took below:

Bitcoin 1 Hour Elliott Wave Chart​

Above is the 1 Hour Elliott Wave Chart from the 12/27/2020 update. In which, the rally from 12/21/2020 low ($21864) unfolded in 3 waves structure with extended wave ((iii)). So, our members knew that the structure is incomplete & Bitcoin should do a pullback in wave ((iv)) & see another push higher in wave ((v)) to complete the 5 waves impulse sequence. Therefore, our strategy was to buy the pullback in wave ((iv)) at the blue box area at $25892- $24740 100%-161.8% Fibonacci extension area of (w)-(x). From there, the next leg higher was expected to take place looking for new all-time highs.

Bitcoin 1 Hour Elliott Wave Chart​

Here’s the latest 1 hour Elliott Wave Chart of Bitcoin from 12/31/2020 Asia update. In which, the Bitcoin managed to reach the blue box area at $25892- $24740 as we were expecting and provided a buying opportunity. From there, Bitcoin rallied once again & made new all-time highs.

Source: https://elliottwave-forecast.com/forex/bitcoin-made-new-highs-blue-box-area/

 

[Elliottwave-Forecast]

First Majestic Silver (symbol: $AG) is one of the purest Silver miners in the market. It's one of the best primary silver producers with healthy balance sheet and ample cash flow. This year, one of the most prominent mining and billionaire investors Eric Sprott has invested C$ 78 million to get a 2.3% stake in the company. We have written an article on August earlier this year alerting readers that the stock is breaking out of multi years consolidation. Since then, the stock has consolidated the gain and retested the breakout area. Let's take a look at the monthly Elliott Wave chart update below

First Majestic Monthly Elliott Wave Chart​

The monthly chart above shows the stock has broken out the multi-year triangle consolidation. One way to interpret the structure is calling it as a nest. The initial rally to April 2011 peak at $26.88 ended wave (I). Wave (II) pullback ended at $2.4. Then the stock is doing a nest in wave (III). Up from wave (II) low at $2.4, wave I ended at $19.15 and pullback in wave II ended at $4.17. The miner then starts to rally again and broke above the multi-year triangle in wave ((1)) at $14.57 on August this year. A retest in wave ((2)) ended at $9.33 and the stock has started to turn higher again. If the proposed count is correct, the stock should perform very well in 2021. It should rally together with the underlying Gold and Silver in a secular bullish precious metal market.

Let's look at shorter cycle below:

First Majestic 4 Hour Elliott Wave Chart​

4 Hour Elliott Wave chart of First Majestic above shows the rally from September 29 low ($9.44) is in progress as an impulse. A break above wave ((1)) high at $14.57 will confirm that a new bullish cycle has resumed. We expect this to happen in 2021 as the stock continues to outperform. As far as dips stay above September 29 low ($9.44), expect the stock to extend higher.

Source: https://elliottwave-forecast.com/stock-market/first-majestic-looking-to-outperform-in-2021/

 

[Elliottwave-Forecast]

AUDJPY is an important currency pair at a global level because this reacts in favor of risk appetite; that is, removing the movements of the Australian dollar and the Japanese yen, the uptrend of the AUDJPY favors the upward movement in the most important indices of the capital market.

Finding the Blue Box in AUDJPY​

In the following chart, we can see that we completed a corrective structure (a) (b) (c) at the price of 75.37. Then we have 5 bullish waves where wave (iv) is drawn as a triangle and the impulse ends around the 77.10 level. As the Elliott Wave Theory says, after an impulse we could expect a correction of 3, 7, 11 swings before continuing in the same direction. (If you want to learn a more about Elliott Wave Theory please click this link: Elliott Wave Theory). Therefore, we look for another 3 waves correction (a) (b) (c) before continuing with the rally. With waves (a) (b) labeled on the chart we use the Fibonacci extension to identify the area of the blue box in AUDJPY which came between the prices of 76.22 and 76.50.



After a couple of hours we appreciate that the pair slightly reached 76.50, bounced from the blue box and broke the 77.10 level continuing with the rally. Currently the pair is at the price 78.61 at the time of writing this article.



Source: https://elliottwave-forecast.com/forex/forecast-audjpy-rally-december/

 

[Elliottwave-Forecast]

Some rules within The Elliott wave Theory can be subjective as it allows flexible and various alternatives. However, one of the stronger points in the theory is the sequence of five. In the Elliott Wave Theory, wave 5 is located at the end of an impulsive structure. The main pattern is the five waves followed by three waves back. Afterwards, more upside in the direction of the five waves should follow. The graphic below shows the illustration:

• There are five waves off the lows.
• Each leg comes with a subdivision of five waves.
• After the five waves, a three waves pullback happens to correct the cycle, before more upside in the previous five waves' direction.

Thus, one significance of the number five is it signals the right side of the market. In an impulsive structure, the right side of the market is the direction where the 5 waves is heading.

Another significance of the number five is when it's doing a double three correction (WXY). The primary correction, in the Theory, is the well known ABC zigzag. Sometimes the primary trend is not that strong, and the market ends up doing a seven swing structure. The idea of a seven swing correction suggests the market has to go through a process of a five and six swing before ending seven swing. Thus, within 7 swing corrective structure, when five swings correction are in place, the right side becomes apparent, and more extension in that direction should follow.

The Following chart below gives the illustration of a 7 swing structure:



The above graphic is an example of the WXY or a seven swing structure. The fifth swing in the example above is at wave A of (Y). At this point, we can identify 5 swings from the top, suggesting more downside to follow to end 7 swing structure.

Another significance of the number five is when the market is nesting. A nest is a sequence the market follows before a strong acceleration in the direction of the right side. Many times the nest happens in wave three of a five waves impulse. Knowing the right side and possibilities before the break is critical, and the number five is vital. The following chart shows wave 3 extension in different nesting structure:



We can see from above the three nesting possibilities can be either in wave I, wave III, or wave V.

The reality is that nobody knows the future with a hundred percent certainty, but understanding the Theory and how to apply it is the key. Many traders tend to overthink the Theory and ending up either missing the move or get caught at the wrong side. The following chart from Boeing below illustrates the nesting principle:

Boeing (BA) Daily Elliott Wave Chart​

The chart above shows how Boeing shows five swings off the lows at March 2020. This means that one of the three possibilities explained above will end soon. It can either be a diagonal (5 waves from March low), or it can be a 5 swing of WXY, or it can be a nest. At this moment, we favor the nest due to the monthly sequences presented in the following chart below:

Boeing (BA) Weekly Elliott Wave Chart​

The chart above clearly shows five waves advances and three waves pullback to this year's low. We see it very hard for the symbol to trade into seven swings higher and then make another low, even when it is possible. In reality, there is no more space to correct wave ((I)) with another leg lower. The market will dictate and, as always, the market is always right, but understanding the path is key.

Source: https://elliottwave-forecast.com/stock-market/baboeing-a-huge-low-can-be-in-place/

 

[Elliottwave-Forecast]

Many stock tickers and Indices across the world are showing five waves within the Grand Super Cycle. Many Elliott Wave practitioners will be looking for a crash or big three waves across the Market. We at EWF always correlate the Market because, in the end, there is only 1 market and they work in sync. We see Indices like $FTSE, which does not support the five waves within the Grand Super Cycle. Instead, it calls for a nest into a huge Bullish cycle, even more significant than the one from 2009-2020.

FTSE Monthly Elliott Wave Chart​

The monthly chart of $FTSE above shows the Grand Super Cycle. It also shows the overlap from the cycle since 2009, which denies the possibility of a five waves advance since all-time lows. We have seen many times in the past five waves become a nest, and many traders get caught in the wrong side selling a wave five. We have developed a system that will determine when to switch from a five waves advance and three waves pullback scenario to an extended nest. The RSI is vital, and knowing how to read it can be the difference between catching a strong wave III or attempting to fade a strong trend.

In Elliott wave theory, in an impulsive structure, wave III should have the highest momentum. Wave V momentum should show a negative divergence to wave III. The following chart below illustrates the idea:

$SPY Monthly Elliott Wave Chart​

The chart above shows the advance in the $SPY since the all-time lows. The chart above can trap many shorts who try to fade the move. As we can see, the RSI highest momentum happens in wave (III), and wave (V) shows divergence against wave (III) peak. Thus, SPY wave structure can be a five waves advance since the all-time lows. As we mentioned above however, sometimes five waves can become a nest. We show the nest in the following chart:

$SPY Quarterly Elliott Wave Chart​

A nest is nothing more than the market creating energy into an extended break or extension within one of the three impulses. Relating the nest to the $SPY, wave (III) can become wave I, and consequently, a big move will happen in the years to come. Let's take a look at $DIS (Walt Disney Company) chart below. The wave structure of $DIS looks very similar to that of $SPY, but there are significant differences between the two when it comes to the RSI.

Walt Disney Company ($DIS) Quarterly Elliott Wave Chart​

Walt Disney ($DIS) Quarterly chart above shows a nest and the reason why. First, we can see a vertical move since the 03.2020 lows, which is usually an indication of a wave III. If the nest is the right count, then we should be within ((1)), which is only the first leg of wave III, with a huge follow-up move coming. The divergence between the peak at 02.2020 and current highs still remains in place for now.

Secondly, we can see the divergence between the peak at 04.1998 and the peak at 02.2020. Ideally, that is a sign of a nest and something to keep into consideration. As we mentioned above, many Indices and stocks across the market are either not five waves within the Grand Super Cycle or do not have space to decline like the one in 2020. The next few months will be critical to determine whether it's a nest or crash. The current data however is pointing into the NEST.

Source: https://elliottwave-forecast.com/st...-possible-huge-move-coming-across-the-market/

 

[Elliottwave-Forecast]

Hello fellow traders. Another instrument that we have been trading lately is Soybeans ($ZS_F). In this technical blog we’re going to take a quick look at the Elliott Wave charts of Soybeans ZS_F , published in members area of the website. As our members know, ZS_F is showing impulsive sequences in the cycle from the April 808’0 low. Consequently we’ve been calling rally in Soybeans. Recently the commodity made pull back that has given us nice opportunities to enter the long side.

Soybeans ZS_F 1h Hour Elliott Wave Analysis 12.28.2020​

The commodity is bullish against the 115'2 in first degree. We advised members to avoid selling ZS_F and keep on buying the dips in the sequences of 3,7,or 11 swings whenever get chance. We got short term (iv) blue that has form of Elliott Wave Zig Zag pattern. The price has already reached equal legs from the peak at 1248'5-1236'6 ( buying zone).
We don’t recommend selling the commodity and favor the long side from the blue box area. At this moment we see (iv) blue already completed at the 1245'3 low. However if that level gets broken, then we will measure next set of equal legs from the peak, and will buy the commodity again in 7 swings.

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 Patterns at our Free Elliott Wave Educational Web Page.

Soybeans ZS_F 1h Hour Elliott Wave Analysis 1.4.2020​

1245'3 low held nicely during the short term pull back and we got further rally toward new highs as expected. We expect cycle from the 1245'3 low to complete soon as 5 waves rally. Soybeans now remains bullish against the 1245'3 low. As far as mentioned pivot holds, we expect pull backs to keep finding buyers in 3,7,11 swings.

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



Elliott Wave Forecast
Source: https://elliottwave-forecast.com/trading/soybeans-zs_f-buying-dips-blue-box-area/

 

[Elliottwave-Forecast]

In this technical blog, we are going to take a look at the past performance of EURNZD, 1-Hour Elliott wave Charts. In which, the decline from 12/22/2020 peak took place as an impulse Elliott wave structure with right side tag pointing lower called for more downside. Therefore, our members knew that selling the bounces in the direction of the right side tag remained the preferred path. We will explain the Elliott wave structure & selling opportunity our members took below:

EURNZD 1 Hour Elliott Wave Chart​

Above is the 1 Hour Elliott wave Chart of EURNZD from the 1/04/2021 NY update. In which, the decline from 12/22/2020 peak is unfolding as an impulse sequence where wave 1 ended at 1.7078 low. Wave 2 bounce ended at 1.7237 high as a lesser degree double three structure. Down from there, the decline to 1.6938 low ended wave 3 & made a wave 4 bounce higher. Therefore, our strategy remained to sell wave 4 on the bounces. While the internals in wave 4 bounce unfolded as an Elliott wave zigzag structure where wave ((a)) ended at 1.7046 high. Wave ((b)) pullback ended at 1.6987 low and wave ((c)) was expected to reach 1.7093- 1.7159 100%-161.8% Fibonacci extension area of ((a))-((b)). From there, sellers were expected to appear again looking for more downside.

EURNZD 1 Hour Elliott Wave Chart​

Here's a 1 Hour Elliott wave Chart from 1/05/2021 NY Midday update. In which, the pair is showing reaction lower taking place from the blue box area. Allowed shorts to get into a risk-free position shortly after taking the short position at 1.7093- 1.7159 blue box area.

Source: https://elliottwave-forecast.com/forex/eurnzd-resume-trend-blue-box-area/

 

[Elliottwave-Forecast]

In our last article on Pan American Silver Corporation (ticker: PAAS) dated November 25 last year, we suggest that the stock is about to end correction and resumes higher. This is the chart we provided last November looking for buyers at the blue box.



Fast forward to the new year, the stock failed to reach the blue box and has started to turn higher. With the new second round stimulus check approved by congress as a bipartisan bill, and Georgia Senate election possibly tilting towards the Democrats, market is preparing for even further stimulus and money spending by government.

This article today gives an Elliott Wave update on PAAS

PAAS Monthly Elliott Wave Chart​

The monthly chart of PAAS above shows the rally from January 2016 low is in progress as a 5 waves impulsive Elliott Wave structure. Wave ((4)) of III has ended at $28.33 and the stock has started to resume higher again. Expect more upside to end wave ((5)) of III, then it should pullback in wave IV before turning higher again. The stock is still in very early stage of a wave ((III)) move in Grand Super Cycle degree to the upside.

PAAS Daily Elliott Wave Chart​

Daily Elliott Wave chart above shows the stock has broken above the descending bearish trend line from August 2020 peak, suggesting the cycle is over. The stock still needs to break above that peak to signal the correction is complete and rule out a double correction. However, a look of the rally from wave ((4)) low suggests the structure of the rally is a nesting impulse, favoring the idea that the correction is completed.

PAAS 4 Hour Elliott Wave Chart​

The 4 hour chart of PAAS above shows the rally from November 24 low (28.33) unfolding as a nested impulsive Elliott Wave structure. Expect the stock to continue moving higher in coming days / weeks to end wave ((5)) of 3 in 5 waves before a pullback happens and stock resumes higher again.

Source: https://elliottwave-forecast.com/stock-market/pan-american-silver-paas-resumed-rally-higher/