PPL PROBABLY IN WAVE '' A '' OR " B " - LONGPPL is most probably in wave C of an A or B wave which is almost completed or about to get completed. our preferred wave count suggest that we should get one more leg down towards 144-140 range which will touch the long term yellow trendline and prices should bounce from there, the other possibility is that price will not go below 147 and will keep on climbing toward 173-183 range or towards the blue trendline.
Alternate wave count suggest that wave C might get extended and will keep on declining reaching our long term buy zone of 124 - 106 range.
So this is how we will trade this setup:
Scenario 1:
If 147 is not taken out and prices keep on rising then we will not take any trade because our confirmation level is 164.11 and target is 173-183 which does not give us a good risk/reward ratio
Scenario 2:
If prices do decline below 147 and reach 144-140 level, we will buy a small portion at that level and will wait for a bounce from the yellow trendline, if prices unfolds as predicted then we will add more to our long positions using swing trade. However, if prices keep on declining towards our long term buy zone then we will add positions at 120-110 levels. PPL has strong fundamentals therefore we are quite comfortable holding it for long term.
Trade setup:
Entry price: 144-140
Stop loss: We are bullish on PPL long term therefore we will hold these positions
Targets: 173-183 (Ideal is upper blue trendline)
If our wave count is correct then we might make 20.97% or 25.87% of gross profit on this trade
Let see how this plays, Good Luck!
Disclaimer: The information presented in this wave analysis is intended solely for educational and informational purposes. It does not constitute financial or trading advice, nor should it be interpreted as a recommendation to buy or sell any securities.
