An Elliott Wave and Falling Wedge Pattern Analysis on ACHR Stock

3月20日

We’ve identified a potential Falling Wedge pattern forming on the ACHR chart. This pattern is often seen as a bullish reversal pattern, indicating a possible shift from a downtrend to an uptrend. Additionally, we are currently in the 4th wave of the Elliott Wave cycle, which is typically a retracement wave, with a 5th wave incoming.

Pattern Details

The Falling Wedge pattern consists of two converging trendlines, both slanted downwards, with the lower trendline steeper than the upper one. The price consolidates and moves within these trendlines towards the apex, before breaking out upward.

Elliott Wave Analysis

According to the Elliott Wave Theory, market trends move in a series of five waves. We believe that we are currently in the 4th wave, which is typically a retracement or consolidation wave after the strong 3rd wave. This aligns with the formation of the Falling Wedge pattern. The 5th wave, which is expected to be an upward move, could be on the horizon.

Trading Strategy

If the Falling Wedge pattern and the Elliott Wave analysis hold true, traders could consider going long upon the breakout of the upper trendline of the wedge. The target could be calculated as the height of the wedge added to the breakout point.



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