IEX is showing impulsive rise post covid low's.Currently we are in Primary wave 5 (which has taken a form of ending diagonal as it's 5 intermediate wave has 3-3-3-3-3 internal structure)intermediate wave 4 minor C,which can end near 200 odd levels.
Following are the reason for intermediate wave 4 to end around 200-206 levels.
1)100% extention of minor A for minor C is coming @ 199
2)Intermediate wave 2 price action zone is 206-190,wave 4 in ending diagonal does enter and end in wave 2 price action zone.
3)We have raising trendline connecting primary wave 2 and primary wave 4 lows coming @ 190 which will keep on increasing there by giving us a zone of 190-200 as probable support.
4)we have 200 day ema at 180,and by the time we form wave 4 low's this too will rise towards 190 odd levels which can act as support.
Analysis:
So as of now we are in Primary wave 5 intermediate wave 4 minor C,meaning we can see current fall taking prices towards 200 odd levels,from there we can still get a last push on the upside in the stock in the form of intermediate wave 5,however this is the least ideal time for taking a long entry still for short term trader with pre-defined exit one can expect 10% move on the up side once price reverse's from 190-206 zone giving us a final target of 220.Stop-loss for this trade would be the intermediate wave 4 low's,trade setup criteria is discussed below.
Trade setup Criteria:
Again for entry one needs to have bullish reversal candle along with price crossing 9 day ema and breaching 2-4 trendline of minor wave C.Momentum indicator can be used to check oversold levels.Enter once price follows this criteria after entering 190-206 zone,and keep the reversal candle low as initial stop-loss for an upside target of 220.
Observation:
Wave-1:Leading diagonal
Wave-2:Regular flat
Wave-3:200% Extention of wave 1
Wave-4:Running falt
Wave-5:Ending diagonal.
Alternation between wave 2 and wave 4 is seen in terms of prior wave retracement,price,pattern and time.
Disclaimer:This are just my views on this stocks,no position should be build or exited solely on its basis.I am putting this analysis for my future reference.
Following are the reason for intermediate wave 4 to end around 200-206 levels.
1)100% extention of minor A for minor C is coming @ 199
2)Intermediate wave 2 price action zone is 206-190,wave 4 in ending diagonal does enter and end in wave 2 price action zone.
3)We have raising trendline connecting primary wave 2 and primary wave 4 lows coming @ 190 which will keep on increasing there by giving us a zone of 190-200 as probable support.
4)we have 200 day ema at 180,and by the time we form wave 4 low's this too will rise towards 190 odd levels which can act as support.
Analysis:
So as of now we are in Primary wave 5 intermediate wave 4 minor C,meaning we can see current fall taking prices towards 200 odd levels,from there we can still get a last push on the upside in the stock in the form of intermediate wave 5,however this is the least ideal time for taking a long entry still for short term trader with pre-defined exit one can expect 10% move on the up side once price reverse's from 190-206 zone giving us a final target of 220.Stop-loss for this trade would be the intermediate wave 4 low's,trade setup criteria is discussed below.
Trade setup Criteria:
Again for entry one needs to have bullish reversal candle along with price crossing 9 day ema and breaching 2-4 trendline of minor wave C.Momentum indicator can be used to check oversold levels.Enter once price follows this criteria after entering 190-206 zone,and keep the reversal candle low as initial stop-loss for an upside target of 220.
Observation:
Wave-1:Leading diagonal
Wave-2:Regular flat
Wave-3:200% Extention of wave 1
Wave-4:Running falt
Wave-5:Ending diagonal.
Alternation between wave 2 and wave 4 is seen in terms of prior wave retracement,price,pattern and time.
Disclaimer:This are just my views on this stocks,no position should be build or exited solely on its basis.I am putting this analysis for my future reference.