best stock in the universe, page-177

Hai Lapdog

Lovely chart.

The wave count is always difficult and complex and that is where projections can go wrong.

In your wave chart, wave 1, 2, 3 are ok. The problem is whether wave 4 has been completed.

From Elliot website, I have outlined the three basic rules for Elliot waves

1. Wave 3 can never be the shortest impulse wave. (this is ok in our case)

2. Wave 2 can never exceed the start of Wave 1. (also ok)

3.Wave 4 can never overlap Wave 1 (i.e., cross into the same price area).

Do you understand the 3rd rule ? Does this mean that the stock price at the end of wave 4 should not reach the high of wave 1 ? I think the high of wave 1 was $ 40.3 on 4 Feb 2008. The start of wave 1 was $ 31 on 22 Jan 2008.

Does this mean therefore for the rules to hold, wave 4 low cannot be lower than $ 40.3 ?

From another TA specialist, I heard that BHP would go to $ 45 short term and has to re-test $ 40-42 before going up again.

Your thoughts please

Sarala