DYL Weekly Corrective PatternsThought I would revisit Deep Yellow DYL ASX stock again to see where we are at
This stock follows Elliott wave and fibonacci levels very well and was a 500% trade for me from $0.30 up to $1.50, there are multiple posts I created about it along the way
The stock itself is in a long term holding pattern as it is unlikely to become profitable in the next 1-2 years
Therefore I looked at the overall structure to see if were any corrective patterns and interestingly it has a pattern of forming 3-3-5 flat formations
i.e. ABC down, ABC up + larger 5 wave move down or in reverse
3-3-5 flat formations are corrective in nature and trend sideways, but are still tradeable if you know where you are in the overall structure and pick low risk high reward entries and know when you should get out...
On this chart if we were to mirror an earlier 3-3-5 pattern and look at what happened next, it created a 3 wave (ABC) move in the opposite direction to the 5 wave move
What that means is that I believe it is possible for this to rally from $1.20 to around $1.70 which is a ~40% move, before falling back to $1.20 or lower, then form a base to create a 5 wave move upwards
What does this mean? from my perspective it means there is a chance that this could rally short term before dropping back to the origin or even slightly lower and then create another 5 wave move upwards
No trade for me, but interesting to see sideways patterns forming and understanding what is actually happening, and also knowing you can trade them...
