Elliott Wave Analysis of Saudi Steel Pipes Comapny

A colleague asked for Elliott Wave Analysis of Saudi Steel Pipes Company. This is a Saudi Arabia-based manufacturer of welded steel pipes. The chart shows a dramatic fall from around 36.50 Riyals in Q1 of 2010 all the way down to under 19 Riyals by Q4. The recovery from the low of 18.72 appears to be a 5-wave affair, and as we know, if the first movement in a new direction is made up of 5 waves, we will get a 3rd step in the same direction. Interestingly, we got a deep (100%) retracement as a second wave, setting up a double bottom. We are currently in either wave 3 or wave C. Either way the stock looks well bid, and once we overcome 25.60, a move to 27.60 shouldn’t take long. A low-risk buy level comes at 24 and 23.50


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