thyssenkrupp AG (TKA) EW-Analysis
The long-term bottom is in!
Since 1988, Tyssenkrupp AG has formed a poorly defined structure. After reaching its all-time high at $31.86, the stock broke down and, in 2019, fell to new lows below its initial public offering price, establishing fresh cyclical lows. This price action reflects strong bearish momentum over the long term.
However, in September 2024, the market appears to have found its bottom at $1.87 and began a clean impulsive move, showing renewed bullish momentum. We expect that this impulsive fractal marks the beginning of a new cycle, with the stock having established its major cyclical low and now transitioning into its first sustainable long-term uptrend.
Since this market bottomed at $1.87, Tyssenkrupp AG has formed, within the light blue cycle, its first bullish fractal, unfolding as green wave 1. This green wave represents the first bullish impulsive structure.
Currently, the stock is undergoing a short-term correction to develop green wave 2 and complete the overall impulse. This correction is unfolding in a three-wave structure, labeled orange wave a, b, and c. The market has already completed orange wave a and formed an overshooting wave b. At present, the correction is trading in its final leg, forming orange wave c.
With the completion of orange wave c, the corrective phase should come to an end, and green wave 2 will be successfully established. For the termination of green wave 2, we have defined a Fibonacci retracement zone:
- 61.8% at $5.23
- 78.6% at $3.75
- 88.7% at $2.86
Within this zone, we expect orange wave c to complete and finalize green wave 2.
From that point onward, the market should regain strong bullish momentum and begin new impulsive movements, continuing a sustainable uptrend. This would lead to the development of an extended bullish green wave 3, breaking above the local high of the overshooting orange wave b at $12.47.
Based on this outlook, our Fibonacci retracement zone represents prime buying and accumulation levels for this stock. Given both the long-term and current structure, this zone may offer a key opportunity to enter near the bottom before the stock potentially expands into new long-term highs within a sustained uptrend.
If any structural changes occur or if Tyssenkrupp AG reaches and activates our Fibonacci retracement zone, we will provide updates immediately.
Kind regards,
Monalytics
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