Sharing my observations and ideas on BBBY
Assuming that the wave count on this chart is correct, Wave 3 extended 227% Wave 1. Wave 4 seems to be complete and the breakout of the corrective channel could indicate that Wave 5 is developing now.
Additional observations:
1) Williams R% signature
2) MACD signal
3) Price "position" relative to Ichimoku clouds and its signal
4) Price "position" relative to the pivot (just above it)
5) MA compression (10, 20, 50)
6) Price "position" and evolution relative to the Donchian Channel's mid point
These observations from 1 through 6 make me believe that Wave 5 is actually developing.
I'd use as first TP right where Wave 5 would be 100% Wave 1 (which just happens to be coincident at the price where Wave 3 topped), leaving a RR of 1.17; but I see also a confluence between one of the historical eighths (62.5% of max historical price) and the level where Wave 5 would reach 161.8% of Wave 4, a bit above 30/share (which also happens to be an important support/resistance level since 1998). TP2 would give a RR of 2.47.
SL has been placed 1 tick below Wave 4 bottom, which marks the point where if price prints a tick, all this analysis would be wrong.
Additional observations:
1) Williams R% signature
2) MACD signal
3) Price "position" relative to Ichimoku clouds and its signal
4) Price "position" relative to the pivot (just above it)
5) MA compression (10, 20, 50)
6) Price "position" and evolution relative to the Donchian Channel's mid point
These observations from 1 through 6 make me believe that Wave 5 is actually developing.
I'd use as first TP right where Wave 5 would be 100% Wave 1 (which just happens to be coincident at the price where Wave 3 topped), leaving a RR of 1.17; but I see also a confluence between one of the historical eighths (62.5% of max historical price) and the level where Wave 5 would reach 161.8% of Wave 4, a bit above 30/share (which also happens to be an important support/resistance level since 1998). TP2 would give a RR of 2.47.
SL has been placed 1 tick below Wave 4 bottom, which marks the point where if price prints a tick, all this analysis would be wrong.
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