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
5 Comments
Hi Ramki,
If one buys around 24 or 23.5 what should be his stop.
Pankaj
Pankaj, the right moment to buy is after you see a mini 5 wave rally after bottoming out at 24 or 23.50. Once you see such a 5 wave rally (maybe in the hourly charts), yyou will buy a 50% pullback with a stop below the low seen.
Appears to be a good chance .we will continue to learn from you Ramki Thanks a lot
Katthy, You are welcome.
Good day Mr. Ramki
We really appreciate any update on Tasi and Sabic, since the earning is over. I would like to get a feeling on the market direction
Regards