I have used a Line chart of closing prices to more clearly show us the different waves.
We are now completing the final wave E of a massive Triangle from early June.
A triangle per elliotwave rules comprises of 5 subwaves - a, b, c, d and e.
The pattern is identical to what saw in May to early June but more compact (on a Log chart) and more extended which means a breakout should be powerful.
Ideal entry is to wait for a breakout of the top trendline but we should be days away from that if this analysis is accurate.
If we break below the bottom trendline on significant volume then the above is invalidated and time to get out.
I will play this with Dec 17, 2021 $100 Call Options.
The green extension shown is a Bar Pattern copy of the rally coming out of the last triangle formation we had back in May to early June 2021.
I do not expect the top target here to be reached as shown above - it is merely for illustrative purposes. I do however expect us to go above $100 by Dec 17 if not earlier.
40 is being tested second time now you think it still goes dowm to test lower trendlime 36ish?
Anonymous11921
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Looks like it already touched the 36 level on after hours. Think we go up from here?
cyrusgr8
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@Anonymous11921 Hi. 1) I don’t see the after hourse touching of 36 you are seeing on either tradingview or anywhere else. 2) I don’t use post or pre-market price data in analyzing patterns. The volume is too low for it to count. 3) It is hard to say wave E of this triangle is completed until it breaks out of the top trendline. Waves E’s can be notoriously complictaed sometimes - in some cases turning into a mini-triangle themselves of 5 smaller subways. Wave E’s are usually (like every other wave inside a triangle) zig-zag 3 wave ABC patterns though they can also form double or even triple zig zags and even mini-triangles as I said before. If want to enter at these levels it is not unreasonable but have a tight or a mental stop below the lows of wave C. I personally prefer for a close above the top trendline on good volume before I enter or alternately wait for a breakout and a retest of the top trendline but the latter I generally don’t like since the retest sometimes never comes especially if a low of short-covering forces a powerful rally out of the triangle. Hope this helps :)