Elliott Wave Analysis of Saudi Steel Pipes Comapny
11 April 2011
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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 | |
I teach exactly this kind of Middle East markets setup, step by step, in the impulse and correction chapters of Five Waves to Financial Freedom, the same tools used across every market I trade, including Middle East indices.