Luminar Technologies (LAZR) Intraday Analysis - 4/23/24Overview:
Luminar Technologies (LAZR) appears to be forming a possible bullish diamond pattern, which could indicate a potential bullish reversal. Combining Fibonacci retracements and extensions with Elliott Wave Principle (EWP) counts, we'll explore potential price levels and patterns for today's intraday trading session.
Chart Analysis:
Bullish Diamond Pattern:
The bullish diamond pattern suggests a potential reversal from the current downtrend. This pattern consists of two converging trendlines forming a diamond shape, with higher highs and lower lows within the pattern.
If the pattern completes, it could propel LAZR towards longer-term targets around $3 or above.
Fibonacci Levels:
Using Fibonacci retracements and extensions, we have identified key support and resistance levels:
Assumptive Fibonacci Ratio (White): From 1.21 to about $1.70, one of the next major resistance zones between $1.60-$1.70.
Blue Fibonacci Ratios (Assumptive): Based on a runup to $2.93-$2.95, the 3.618 extension projected by the white Fibonacci extensions.
These Fibonacci levels provide guidance for potential entry and exit points.
Elliott Wave Counts (EWP):
Intermediate EWP Counts (Green): Basic Elliott Wave counts have been applied to identify short-term trends and corrections.
Primary Higher Order EWP Counts (Blue): Loosely applied Elliott Wave counts to identify larger market cycles.
These EWP counts complement the overall technical analysis and help in understanding potential wave patterns.
Potential Intraday Strategy:
Entry: Consider entering long positions if LAZR breaks above the upper trendline of the diamond pattern with strong volume confirmation.
Exit: Take profit at resistance levels indicated by Fibonacci ratios or at the upper boundary of the diamond pattern.
Stop-loss: Place a stop-loss below the lower boundary of the diamond pattern to manage risk.
Risk Factors to Consider:
Market Volatility: Intraday price movements can be volatile, so ensure proper risk management.
Pattern Failure: If the bullish diamond pattern fails to complete, be prepared to adjust the trading strategy accordingly.
Conclusion:
Luminar Technologies (LAZR) is showing signs of a possible bullish reversal with the formation of a bullish diamond pattern. By combining Fibonacci levels with Elliott Wave Principle counts, we have identified potential entry and exit points for intraday trading. However, it's important to remain cautious and adapt to changing market conditions.
