Get started

Elliotwavecount

GBPUSD is Setting a Stage for Massive Rally.The advance from September 2019 low can be seen as a five-wave Elliot Wave impulse structure, labeled 1-2-3-4-5. According to the theory, a three-wave correction follows every impulse pattern. In GBPUSD's case, the decline from wave 1 high in December 2019 has been unfolding as a three-wave A-B-C zigzag pattern. Wave A and B of the correction are sharp moves while wave C seems to be unfolding as an ending diagonal pattern. If this count is correct, GBPUSD is about to complete a bullish 5-3 wave cycle. The theory states that once a correction is over, the larger trend resumes in the direction of the impulse. Here, once wave “C” is over, a bullish reversal can be expected. The anticipated rally has the potential to move GBPUSD price above wave 5 high around 1.3518 in the short term. What's your thought on GBPUSD? Let me know in the comment. Thanks.
Long
by Veejahbee
3
How Far Will the Prices of Gold Fall, $1000/oz? Gold’s reputation as a safe haven in times of financial turmoil was tarnished on Friday as the growing panic about the spread of coronavirus infections outside China saw the precious metal suffer one of its worst one-day drops on record. While the coronavirus is the major headline for the shock and awe in gold, the chart has already presented a pattern that suggests a possible sell-off. And last week's decline could be the beginning of a massive sell-off according to Elliot Wave Principle. Elliot Wave Analysis The decline from $1920.10/oz in September 2011 to as low as $1044.92/oz in November 2015 can be seen as a complete impulse pattern. The five waves are labeled 1-2-3-4-5, where wave 4 unfolded as a triangle and wave 5 in an ending diagonal. The recovery from $1044/oz in 2015 to as high as $1688.72 an ounce in February 2020 looks like a simple A-B-C zigzag correction with a running flat wave B. According to the Elliott Wave theory, impulses point in the direction of the larger trend. Once the corresponding three-wave retracement is over, the trend resumes. In Gold's case, we have an impulse to the south followed by a correction. If this count is correct, there is a complete bearish 5-3 wave cycle. Verdict This means that instead of joining the bulls now, investors should remain cautious. The anticipated decline has the potential to drag Gold below wave (A) low around $1044 an ounce. With the yellow metal currently trading at $1585.40/oz, this translates into a 33% slump, maybe more. Note This is a longterm view on Gold. It takes wave (A) around 5 years to complete the bearish impulse, so we could anticipate this move to unfold in the next 3-5 years. What's your thought on Gold? Can we see $1000 again?
FX_IDC:XAUUSDShort
by Veejahbee
10
Elliot Wave: Can we see one leg down on Bitcoin?In my previous analysis, I stated that the previous correction on BTCUSD is shallow with regards to the impulse move it's correcting and Bitcoin could make a w-x-y double zigzag pattern. Since then, we've got a sell-off which seems to be wave (a) of the second zigzag. Now, I'm expecting a relief rally to retest the broken support level in wave (b). Once wave (b) is completed, I will be anticipating a decline in wave (c) to complete the double zigzag pattern. The potential target for wave (c) is the key weekly support level around $8300. Do you think the correction is over? Let me know in the comment. Thanks.
BITFINEX:BTCUSDShort
by Veejahbee
GBPJPY Set to Complete an Elliot Wave Zigzag PatternGBPJPY's chart above shows the corrective move that started from wave (v) high. The sharp decline can be seen as a five-wave impulse in wave (a) which means the impending correction will most likely be a zigzag. Price has since then moved in a sideway and seems to have completed a double three complex correction in wave (b). To complete the zigzag pattern a five-wave impulse in wave (c) is needed and that looks to have started now. The break of the blue line is a good level to take a short entry.
Short
by Veejahbee
Japanese Stock Index "Nikkei 225" Can Lose 30% in the CorrectionNikkei 225 (JP225), commonly known as Nikkei, is a stock index for the Tokyo Stock Exchange, the world’s third-largest stock exchange with a market capitalization of US$5.6 trillion. As the leading index of Japanese stocks, Nikkei 225 (JP225) is a price-weighted stock index, equivalent to the American Dow Jones Industrial Average Index, comprising Japan’s most powerful 225 blue-chip companies on the Tokyo Stock Exchange. Let’s take a look at Nikkei's structure via the Elliott Wave principle. The monthly chart above reveals that the 2009-2018 rally had formed a textbook five-wave impulse pattern. It is labeled 1-2-3-4-5 where the five sub-waves of wave 3 is visible. Unfolding Correction Makes Nikkei 225 Bulls Vulnerable The Elliott Wave theory states that a three-wave correction in the opposite direction follows every impulse. And indeed, the decline from 24595 to 18951 in 2018 can be seen as a simple a-b-c zigzag in wave A. The Nikkei 225 spent the entire 2019 trying to recover from that low and top at 24412 in December 2019 as a three-wave zigzag in B. This three-wave down and three-wave up pattern make JP225 vulnerable to further decline as it only a part of larger A-B-C flat or W-X-Y double zigzag Elliot Wave correction. Bearish targets near the support area of wave 4 or lower are plausible. If this assumption is correct, we can expect another selloff in wave C to approximately 15000 from the current level. That's a ~33% drop, I think now is not the time for bravery when it comes to the Nikkei 225 or investing in Japan's stock blue chip. Observing from a safe distance makes more sense. Do you think a 30% decline is plausible on Nikkei?
OANDA:JP225USDShort
by Veejahbee
AUDUSD Is Approaching a Reversal ZoneThe structure of AUDUSD decline from Jan 2020 high has been unfolding as a textbook Elliot Wave five-wave impulse move, labeled (i)-(ii)-(iii)-(iv)-(v). Wave (ii) was a sharp correction and wave (iv) unfolded as a triangle. A triangle always preceded the last move of a sequence. The whole structure perfectly fits into a downtrend channel. According to the theory, a three-wave correction follows every impulse move. If this count is correct, AUDUSD should find bottom within the blue zone that lined up with channel support and price should resume an advance in 3, 7 or 9 swing sequences. Target above wave (iv) in red high is plausible for bulls, and the breach of the blue line will confirm the bullish setup. What's your view on AUDUSD?
Long
by Veejahbee
4
BITCOIN Correction Hasn't Reached a Bargain Zone.Bitcoin rally that started on Dec 18th, 2019 low to as high as $10505 seems to be unfolded as a leading diagonal structure. The advance broke a key corrective channel and some weekly resistance levels. The current plunge from Feb 13 high which is currently visible as zigzag is too shallow to correct the entire rally, hence a deeper correction is plausible. I'm anticipating the correction to continue and unfold as a double zigzag and retest a key weekly support level around $8250. Buying at the current market price for investment purposes is not ideal. Wait for a deeper correction. A break below the blue line around $9560 level will confirm a swing short trade opportunity for traders. What's your view on Bitcoin?
BITFINEX:BTCUSDShort
by Veejahbee
6
USDCHF UPDATE: Price Set to Resume The DowntrendI pointed out a key reversal zone in the USDCHF's analysis I published on Feb 17. Price reached the area and find sellers. With the completion of the correction, a 5-3 wave cycle is considered completed. The trend is expected to resume in the direction of the impulse pattern which is bearish in the USDCHF's case. The target below 16th January low is plausible in the months ahead. Verdict: I'm already short and I will be looking to sell on Lower Highs till we reach the blue zone on the chart.
Short
by Veejahbee
NZDUSD Pattern Suggests Downtrend is Over In The MeantimeNZDUSD'S 4-hourly chart reveals the entire price structure from the Jan 2020 top. As you can see, it is a textbook five-wave impulse, labeled (i)-(ii)-(iii)-(iv)-(v). It unfolded within the parallel lines of a trend channel and the sub-waves of wave (iii) are also visible. The market apparently took the guideline of alternation into account, too. Wave (ii) was a sideway expanded flat pattern, while wave (iv) was a sharp correction. If this count is correct, Elliot Wave theory postulates that a three-wave correction in the other direction follows every impulse. For NZDUSD, this means we can expect a three-wave reversal from the current market level. The anticipated retracement has the potential to erase the entire fifth wave. A rally back to the support area of wave (iv) or even higher is very likely. 0.6960 resistance area seems like a reasonable target in the next couple of weeks. What's your view on NZDUSD?
Long
by Veejahbee
2
EURGBP Is Setting Up to Complete a Regular Flat Pattern.EURGBP decline from August 2019 high can be seen as a classic Elliot Wave five-wave impulse pattern, labeled 1-2-3-4-5. Every impulse is followed by a three-wave correction. That is what seems to be in progress in EURGBP's case. The rally from wave 5 low unfolded in three-wave, followed by another three-wave decline which must have been wave "A" and "B" of a larger A-B-C flat pattern. If this count is correct, this corrective scenario best fit in for a 3-3-5 regular flat pattern according to EW. So it makes sense to expect a five-wave rally in wave "C" to complete the corrective cycle. However, the theory states that once a correction is over, the larger trend resumes in the direction of the impulse. Here, once wave “C” is over, a bearish reversal can be expected. What's your thought on EURGBP?
Long
by Veejahbee
2
GBPUSD Corrective Wave ContinueAfter the decline in wave ((a)) in red, the price has been unfolding in a corrective manner which is yet to be completed from Elliot Wave's perspective. Wave (a) in blue is sharp, while wave (b) unfolded as a double zigzag and formed a double bottom pattern. This scenario is best fit in for expanded flat 3-3-5 pattern, which according to the EW guideline, a sharp five-wave rally in wave (c) is needed to complete the whole corrective structure. Trading Opportunity: I will wait for the break of the blue line or daily bullish price action signal to take advantage of wave (c) of ((b)). What's your view on GU, bullish or bearish?
Long
by Veejahbee
3
USDCHF is Approaching a Level That Should Scare the BullsThe rally from wave c of Y low on 16th Jan 2020 has been unfolding as a double zigzag corrective wave. Corrective structure moves in the opposite direction of the major trend, that's once the wave y of X is completed, the bearish trend should resume. I'm anticipating the correction to complete at the daily resistance zone that lined up with the moving average. Watch out for bearish price action signals from that zone to confirm the completion of correction. What's your thought on USDCHF?
Short
by Veejahbee
USD INDEX Is Setting Up for Potential DeclineThe decline from 99.66 unfolded as a leading diagonal structure, labeled i-ii-iii-iv-v. According to Elliot Wave theory, leading diagonal always point toward the direction of the major trend. Also, once a five-wave impulse is completed a three-wave retracement follows. In the Dollar Index case, the corrective pattern seems to be unfolded as a w-x-y double zigzag and has fulfilled the requirement. Confluence that the price is also sitting at a resistance zone and approaching 78.6 Fib, a bearish reversal is imminent. While the 99.66 invalidation level remains intact, watch out for bearish price action signal from the resistance zone. The breach of the Flag channel or blue horizontal line will confirm the bearish setup. What's your view on Dollar?
TVC:DXYShort
by Veejahbee
EURJPY Bears To Complete Long-term Corrective PatternEURJPY has been trading in a corrective structure since Feb 2018. The corrective structure which is unfolding as a triple zigzag is about to complete the last leg lower. As you can see on the chart, the decline from wave X high at 127.501 unfolded in a five-wave pattern in wave (a). It then followed by a three-wave bearish corrective structure in wave (b). According to Elliot Wave theory, once a 5-3 wave cycle is completed the trend will resume in the direction of the major impulse which is down in the EURJPY case. We see an impulsive breakout of wave (b) corrective structure channel and a retest signal further confirming the continuation to the downside. Verdict As long as 122.943 "wave (b)" high remains intact, I will be looking to short on lower high till we reach the blue zone on the chart. What is your view on EURJPY?
Short
by Veejahbee
1
Are EURUSD Bears Overstaying There Welcome?Well, it seems like EURSUD has found support and completed a 5-3 wave cycle with a leading diagonal in wave 1 and triple three corrective pattern in wave 2. The corrective structure fits perfectly in a bearish channel and testing a previous bottom which is also a weekly support zone. The Price has the potential to move higher from or near the current level and travel at least the size of wave 1. Entry Criteria: The breach of the blue lines or the trend channel is conservative way to confirm the resumption of the uptrend. Do you like this analysis? kindly let me know your view in the comment. Thank you.
Long
by Veejahbee
Alibaba Stock Pattern Suggests Uptrend is Almost OverAlibaba Group, $BABA, is a Chinese multinational company specializing in e-commerce, retail, Internet, and technology. Here is what to focus on as we're expecting the earning release on 13th February 2020. However, Alibaba stock is climbing to a new all-time high from a breakout that makes the bulls very excited about the future. But are they right to feel optimistic? That is the question we hope to answer with the help of the Elliott Wave Principle and the chart below. Alibaba’s weekly chart reveals the entire price structure from the 2015 bottom at $57.07. As you can see, it is a textbook five-wave impulse, labeled 1-2-3-4-5. The sub-waves of wave 3 and 5 are also visible. The market apparently took the guideline of alternation into account, too. Wave 2 was a sharp plunge, while wave 4 moved sideways in a triangle correction. Triangles precede the final wave of the larger sequence. If this count is correct, the current rally must be wave 5. The theory postulates that a three-wave correction in the other direction follows every impulse. For BABA stock, this means we can expect a bearish reversal once wave 5 is over around $250. The anticipated retracement has the potential to erase the entire fifth wave. A decline back to the support area of wave 4 or even lower is very likely. $130 a share seems like a reasonable target in the next couple of years. The risk/reward ratio doesn’t look very favorable to the bulls with the stock around $213. Do you like this analysis? Kindly like, comment and follow. Thank you.
NYSE:BABAShort
by Veejahbee
1
GBPNZD Bulls Are Over Staying Their WelcomeThe weekly chart above shows GBPNZD's entire decline from Aug 2015 high. The sell-off is a textbook Elliot Wave impulse pattern, labeled 1-2-3-4-5. According to the theory, a three-wave retracement follows every impulse. Here, that three-wave rally has been unfolded as a W-X-Y-X-Z triple zigzag pattern. Wave (c) of Z is about to complete. I anticipate GBPNZD to find resistance at the 50% Fibonacci level that lined up with the weekly resistance zone. If this count is correct, there is a complete 5-3 wave cycle on GBPNZD's weekly chart. According to the Elliott Wave theory, the trend can now be expected to resume in the direction of the impulsive sequence. I think the bears might not have to wait too long to conquer November 2016 low and beyond. Kindly like, comment and follow if you like this analysis. Thank you. Veejahbee.
Short
by Veejahbee