Forecasting IEX
Updated
After the recent fall in IEX, the stock is finding support at 117 levels which also happens to be March 2021 consolidation levels.
Basis the Elloitt wave analysis, the stock seems to have finished all its negative wave on the weekly charts and thus waiting for a trendline breakout above 141. In the event, it will be correct to say stock has bottomed out and is ready to start the motive wave.
However, in case the stock doesn't hold the levels, it will drift down to 73 levels which also happens to be the pre-covid consolidation zone which at this point seems unlikely mainly due to the below technical reasons.
1. The RSI is pulling back above from the oversold zone.
2. CMF shows a bit of volume accumulation at the lower levels.
Now a big question assuming IEX hit the bottom, how much and by when it will reach it all time highs?
Taking the base of Dec'2020 when IEX broke its consolidation zone. The 1st length of the bullish wave was nearly 57% and considering the Fibonacci pullback of 0.23 from the peak, the levels matches to 161 that is going to be the Target 1. Now, sustaining these levels the stock will form cup and holder formation with the delta of 26 points adding to 161 that will take the stock to 187 where the stock will finish its wave 1. A small correction will likely be possible at those levels till the Fibonacci retracement of 0.38 from where the stock possibly will start its longer 2nd wave and this time the targets will be 230. After that there can be a final wave which will complete the rounding bottom which possible will take the stock back at 300 levels also happens to be the previous all time high.
The complete formation will possibly take around 680 days to complete- Thus, my personal suggestion is to hold the stock
Basis the Elloitt wave analysis, the stock seems to have finished all its negative wave on the weekly charts and thus waiting for a trendline breakout above 141. In the event, it will be correct to say stock has bottomed out and is ready to start the motive wave.
However, in case the stock doesn't hold the levels, it will drift down to 73 levels which also happens to be the pre-covid consolidation zone which at this point seems unlikely mainly due to the below technical reasons.
1. The RSI is pulling back above from the oversold zone.
2. CMF shows a bit of volume accumulation at the lower levels.
Now a big question assuming IEX hit the bottom, how much and by when it will reach it all time highs?
Taking the base of Dec'2020 when IEX broke its consolidation zone. The 1st length of the bullish wave was nearly 57% and considering the Fibonacci pullback of 0.23 from the peak, the levels matches to 161 that is going to be the Target 1. Now, sustaining these levels the stock will form cup and holder formation with the delta of 26 points adding to 161 that will take the stock to 187 where the stock will finish its wave 1. A small correction will likely be possible at those levels till the Fibonacci retracement of 0.38 from where the stock possibly will start its longer 2nd wave and this time the targets will be 230. After that there can be a final wave which will complete the rounding bottom which possible will take the stock back at 300 levels also happens to be the previous all time high.
The complete formation will possibly take around 680 days to complete- Thus, my personal suggestion is to hold the stock
Note
Stated on 18th Aug 2023, we will likely see Wave 1 target of 187 in IEX. The stock met the level today and from hereon the stock will be a buy on dips
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