Elliott Wave Analysis of Arabtec Holding Co Dubai

Elliott Wave analysis can be applied to any number of securities, be an individual stock or index or commodity, or just about anything that is traded in a liquid market. Today, we will take a look at the Elliott Wave analysis of Arabtec Holding Co. This us a popular stock that trades in the Dubai financial markets. In case you haven’t heard, Arabtec Holding Co. (ARTC) headed for its biggest three-day rout since March 2013 as some investors speculated Aabar Investments PJSC, its second-largest investor, is cutting its stake in the Dubai builder. To tell you the truth, I hadn’t heard the news either until AFTER I prepared the charts and mailed them to a friend who runs a large trading desk in Dubai.

The first chart below shows a couple of interesting things. For example, we have a failed 5th wave within the larger first wave. That was followed by a deep correction that went past the 50% retracement level.

Wave 2 of Arabtec
Wave 2 of Arabtec

We then got a fantastic rally was an extended third wave, which went to the 361.8% projection level of wave 1.

Wave 3 went to 361.8% projection of wave 1
Wave 3 went to 361.8% projection of wave 1

After an extended third wave, it is usual for wave 4 to come down to the 23.6% retracement level. This is what happened with Arabtec

Wave 4 down to 23.6%
Wave 4 down to 23.6%

We can anticipate the end of wave 5 by establishing relationship with wave 1. With Arabtec, it was 123.6% of wave 1.

Anticipating end of wave 5 in Arabtec
Anticipating end of wave 5 in Arabtec

If you are wondering how far the fifth wave went past the target, take a look here
Arabtec-5

And what happened at the end of a five wave move?
Arabtec-6

Arabtec probably has a little more ground to the downside, so we have to look at the near term charts to figure that out. I am sure you are now capable of doing that exercise. Go ahead, and give it a shot.



9 Comments

  • Imran

    Ramki, I sent you a request for ARTC analysis when it was in the 5th Wave and took your advise on not getting into the 5th wave. Time and again your analysis are accurate.

    Thanks once again.

    Cheers

  • Khalid

    Hi
    I have enjoyed this ARTC analysis, wanted to ask are there pre signs for the 5th wave failure
    as it shows in the 1st chart. Thanks

  • Khalid

    I was following this stock closely to see where it is heading

    after the fifth wave the stock has plunged down with a zigzag wave ABC and reached at wave C = 2.35
    (C = 238.2% of A) which reached above the top of wave 1 in same degree almost at 2.22 – WOW.

    Am in after the stock penetrated above the reflex point of 4th wave of fifth wave of C.

    Thanks

    • Imran

      Hi,

      For those following ARTC I feel we have not completed the Wave 2 correction with the price going to 4.01 which is exactly 61.8 Fibo. [Wave 0 [2.35 to Wave 1 [5.04].

      Now if I got it right !! reading Ramki’s book the Wave 3 can Insha Allah target 6.7 [ (5.04 – 2.35)*161.8 + 2.35].

      BR,
      Imran.

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