BHM Capital 1H-DFM - Potential Wave 3 in ProgressUsing a combination of Supply and Demand Zones and Elliott Wave Theory, the stock appears to be in the early stages of a potential Wave 3. Wave 3 is typically the strongest impulsive wave, offering high momentum and significant profit margin.
Key Levels:
1. Supply Zones (Resistance):
o Zone 1: 2.88–3.01 (Conservative TP1 area)
o Zone 2: 3.43–3.55 (TP3, next potential major reversal)
o Zone 3: 4.22–4.56 (Stretch target for extended Wave 3)
2. Demand Zones (Support):
o Zone 1: 2.10–2.16 (Current bullish accumulation zone)
o Zone 2: 1.87–1.97 (Stop loss buffer area)
3. Break of Structure (BOS):
o A key BOS has formed at 2.18, confirming a potential trend reversal to the upside.
Trade Setup:
• Entry: 2.21 (Aligns with the breakout and consolidation phase above the demand zone)
• Stop Loss: 1.87 (Just below the demand zone for safe risk management)
• Take Profit Levels:
o TP1: 2.70 (RRR ~1:1)
o TP2: 3.21 (RRR ~2:1)
o TP3: 3.55 (RRR ~4:1)
o Stretch Target: 4.56 (For aggressive traders aiming for an extended Wave 3)
Trading Idea (Summary): The setup aligns with the early stages of an impulsive bullish move (Wave 3). Entry near the 2.21 breakout offers a favorable risk-reward ratio. Manage positions closely at each TP level, especially near supply zones.
"The trend is your friend until it bends at the end."
Stick to the plan and adjust stops to lock in profits as price moves toward TPs.
Monitor volume"Strong volume through supply zones indicates wave continuation"
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Disclaimer: This analysis is for educational purposes only and not financial advice. Always perform your due diligence and manage risks according to your trading plan.
