21 Jul 2020 ● 02:32 PM
Value Wave Investment - Long Term EW discussion
REC completed a correction in a falling channel in wave 2, where wave 2 retraced 50% of wave 1. Now it has broken out of the channel and support is at the 40dema at 104. Holding the breakout and the daily momentum now crossing over to the buy side we can presume that wave 3 started. From the recent bottom 3=1 is at 141. Wave 3 can be either equal to or 161.8% of wave 1 depending on whether its extended or not. It would be shorter if it is going to further subdivide into 5 waves. We will see how it develops.
The quarterly chart of REC shows that we have been through years of consolidation in a complex pattern that has a triple bottom in wave Z complete. The recent impulse wave up seen above then can mean that a larger 3rd wave started. What will drive this wave we cannot know at this stage as fundamentals change or develop. Price action shows the early stages of what can happen if all goes well as per these initial charts. More information should flow as we enter 3rd wave action higher.