cheers for sharing your wave analysis, below is a representation of that on the chart. Wave 3 struck perfectly on the 161.8% Fib extension from Wave 1.
I note the wave 2 retracement was a 50% retracement to test the support zone at 77-80 cents which was the resistance level on the high from the last week of November 2019. Wave 4 retracement dipped below 61.8% fib @ $1.18 hitting a low of $1.10, I believe this pullback was over done and therefore for the purposes of the start point of wave 5 I would use the 50% fib which coincidentally is the high point of Wave 1 @ $1.235 ** (see explanation below)
The 161.8% Fib extension from Wave 3 takes us to a target of $2.40 and if you then pull a fib retracement from that run $1.80 will be the 50% retracement.
I do note though some past resistance at the $2.11 target that you are talking about so it will definitely depend on the strength of the Licensing deal on whether we break through that zone, a 50% retracement from a run to $2.11 takes us all the way back to $1.63 so if the deal is worthy of a re-rate I will personally be expecting to see $2.40 IMO
As you rightly stated this is all speculative and there still remains upside and downside risk, the charts looking nice though
**the mathematical reasoning for that 'coincidence' is that the high point of wave 3 hit exactly the 161.8% fib extension of Wave 1, and the wave 3 started from the 50% fib of wave 1.
Cheers and have a great weekend
KZA Price at posting:
$1.45 Sentiment: Buy Disclosure: Held
