My Take On Chicago Bridge Elliott Wave MovementsEverything looks upward moving for CBI. Although a test came for dropping below the bottom at 12.10 on April 23, the bleeding stopped at 12.12. I believe the stock is currently in:
Grand Supercycle: 1
Supercycle: 5
Cycle: 1
Primary: 3
Intermediate: 1
Minor: 3
Minute: 3
This chart displays my projected path through end of August 2018.
The chart below is the projected movement through May 7.
The chart below is the projected movement thorugh May 21.
I will continue to monitor this movement as I am long with exit plans around August-September 2018. My ultimate target is 31.00 by September. Also expect 24.00 before end of July.
Chicagobridgeiron
Breaking Down CBI Wave 3Currently CBI has just begun the important wave 3. Based on the statistics observed during the current overall Grand Supercycle Wave (white roman numerals), our current wave 3 will most likely end around 31.41 around the end of August 2018.
This will provide massive gains if buying stock and even larger ones with call options.
The solid yellow lines represent the average levels observed throughout the Grand Supercycle. The average Fibonacci Extension from Wave 1 is 105.78% which is move to at least 22.66. The average days observed for a wave 3 coincides with the end of August 2018. The median Extension is 177%, and 176.4% is a Fibonacci number so this area is why I believe the movement should go at least here by the end of August.
I have arrived at the solid red lines when the standard deviation is applied (added) to the average of the days elapsed and Fibonacci Extension percentages.
Rough Path to 345% and 800% gainsMost of these projected points are very rough estimates over the next 3 years based on typical Elliott Wave & Fibonacci level combinations. The stock should move around 345% by the end of September 2019. More to follow
Can you make 800%+ in 3 years? Looks like you can with CBICBI is in Wave 5 with plenty of room to run. This is one of my favorite Elliott Wave fitting stocks right now. All trends, macro and micro waves are pretty well-defined. You can invest now and sit back, or play the option game here too.
Further Analysis Shows A Drop Is Coming For CBIWe have "zoomed" in further and are highly confident Cycle wave 1 has ended for CBI. The stock has met 3 Fibonacci retracement and extension points while creating Cycle wave 1. The stock is set to drop over the next few weeks. Our target is south of 17, most likely around 15. Once this bottom is met, the stock should head to 25 in the next 6-7 months. Full analysis in my other idea and website.
Chicago Bridge and Iron Set To Gain 66% By OctoberChicago Bridge and Iron makes reading Elliott waves easy. Even though the stock has had a rough time of late, it was a natural movement when wave theory is applied. The stock is set to drop 20% over the next month to month and a half. Once the bottom is found, the stock should gain 66% over the next 6-7 months. More is detailed at limitlesslifeskills.
Chicago Bridge & Iron (CBI) Could Be In For YUUGE GainsChicago Bridge & Iron Company has been in a long bearish trend since 2014. On multiple occasions through this trend, three of the technical indicators discussed below are at similar or lower levels, than they are now. These instances have resulted in nice short-term gains for the stock. I have laid out the reasons and levels to which the stock may gain while it most likely continues its long-term trend.
When we look at technical indicators, the relative strength index (RSI) is at 23.5869. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. Currently the RSI oversold.
The positive vortex indicator (VI) is at 0.6590 and the negative is at 1.2802. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The negative value is high, meaning the stock has been moving down, however, it is trending downward. This means the stock has ended its downward trend and should begin to move up soon.
The stochastic oscillator K value is 11.3245 and D value is 11.1765. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The stochastic is oversold. The D value is below the K and the stock is beginning to move up.
SPECIFIC ANALYSIS
I have created an algorithm (called SAG gauge) which signals when stocks are truly overbought and oversold. The algorithm indicates when a particular stock meets multiple criteria which culminates in an oversold or overbought alert. That signal will occur over the next two days. The only thing holding this signal from going off now it continued gains in the stock. Because this signal will go off after continued gains, now is the best time to enter a position and take greater advantage of the pending upward movement.
Upon back-testing this indicator, it has signaled oversold status 18 times in the history of the stock. The stock gains at least 0.20% over the following 30 trading days after the indicator date. Eighty percent of the time, the stock gains 3.50% and seventy percent of the time gains 7.25%.
In the history of this stock, it always gains a minimum of 1.88% when the negative VI conducts a double cross above its current level at the same time the RSI is at or below its current level. The additional study requires the stochastic to be oversold as it is today. Six similar occurrences were studied. The median gain for the stock is 10.18% and the gain takes a median of 6 trading days to occur. Four of these six instances occurred at the same time the SAG gauge determined the stock to be oversold. The minimum gain for these instances is 6.81% and the median gain is 11.70%. All of these statistical gains happen fast so anticipating the stock to go up and up is not recommended. The maximum movement for this stock could occur within the next 10-15 days.
Considering the RSI, VI and stochastic levels, the overall direction favors a move to the downside. Based on historical movement compared to current levels and the SAG gauge, the stock could gain at least 7% over the next 31 trading days if not sooner.
