Hello Traders,
BYD made a low on the week of March 23 in 2020 @ 33.5 and advanced strongly since. This low could be a wave „((X))“ with a wave „((Y))“ to follow.
Why do I think that?
Well, the first leg of advance, starting end of September 2005 is clearly a „three-up“! This indicates a „corrective“ advance as I mentioned before.
The move that developed from the wave ((W)) high to the wave ((X)) low has the shape of a wedge. Price broke out above the area of ~90 HK$ at the latter week, indicating more buying pressure to come. But notice, on the weekly also to observe is the clear „five-up“ which indicates an end of the first impulse to the upside. So a starting correction should not surprise traders in the short term.
With RSI in strong overbought areas (above 80 levels) this scenario could be the next to expect!
If this would be the case, a corrective price target should be at or around the 68 HK$ areas, where a wave 4 of lesser degree was done.
On the other hand. While BYD was rising into never seen territory it could be that the running advance will last longer and extend well into the next weeks.
I will update the chart if the pattern becomes clearer.
Have a great weekend....
ruebennase
Feel free to asko r cemment!
Trading this analysis is at your own risk!
BYD made a low on the week of March 23 in 2020 @ 33.5 and advanced strongly since. This low could be a wave „((X))“ with a wave „((Y))“ to follow.
Why do I think that?
Well, the first leg of advance, starting end of September 2005 is clearly a „three-up“! This indicates a „corrective“ advance as I mentioned before.
The move that developed from the wave ((W)) high to the wave ((X)) low has the shape of a wedge. Price broke out above the area of ~90 HK$ at the latter week, indicating more buying pressure to come. But notice, on the weekly also to observe is the clear „five-up“ which indicates an end of the first impulse to the upside. So a starting correction should not surprise traders in the short term.
With RSI in strong overbought areas (above 80 levels) this scenario could be the next to expect!
If this would be the case, a corrective price target should be at or around the 68 HK$ areas, where a wave 4 of lesser degree was done.
On the other hand. While BYD was rising into never seen territory it could be that the running advance will last longer and extend well into the next weeks.
I will update the chart if the pattern becomes clearer.
Have a great weekend....
ruebennase
Feel free to asko r cemment!
Trading this analysis is at your own risk!