Following along beautifully where we predicted in May -
BEFORE
AFTER
Went a bit higher than first anticipated but that's a very bullish sign. Went to the 786 which confirms the previous downtrend was very weak. And then as expected a healthy retest of the break out which after a massive strength green candle today on increasing volume, confirms we have turned resistance back into support. Happy days.
WHAT'S NEXT IMO?
Updated chart below:
5-wave move from the dead lows up to 8c tells us the first major rally was impulsive, and 5-wave impulses never occur in isolation. They most often have an ABC correction (which we got down to the 618), and then print a second 5-wave impulse, a second correction (which is usually much shallower but also not as clear cut as an ABC), before a final 5-wave move occurs (the excess phase). We look to have completed the first 2 waves of the second 5-wave move. And if we project it out using some some of the really common Elliott Wave numbers, coincidentally the whole cycle ends up around about 24c which is where I think I landed when I did my fundamental analysis and valuation projections way back when I first entered this stock around the 2c mark (refer to post 'CLE - Shaping up to be the next Fortescue' circa Dec 24). That's also around about the minimum price mark where I concluded Vale would have to offer if they wanted to buy out the remaining 25% after DTM but before getting to production. So the TA marries up somewhat with the FA, which happens more often than you'd realise.
Zooming in on the current price action and why I think it continues to be bullish from here:
Just refer screenshot for notes, I won't type out again
Enjoy, please share feedback.
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