ADNOC Gas (ADX) – Riding Wave 5
Analysis:
The stock appears to be in Wave 4 completion, and Wave 5 seems to be forming as per Elliott Wave Theory. The recent pullback aligns well with a key demand zone around 3.39, which has been respected, indicating strong buying interest.
Wave Analysis:
- Wave (1): Impulsive move from a prior consolidation range.
- Wave (2): Corrective pullback, respecting prior demand.
- Wave (3): Strong impulsive move higher with increased momentum.
- Wave (4): A corrective pullback to a demand zone near 3.39, forming a higher low.
- Wave (5): Targeting 3.97-4.00 levels, aligning with a Fibonacci 1.618 extension of Wave 3.
Supply/Demand Zones:
- Demand Zone: 3.39-3.14 (validated as price has reversed strongly).
- Supply Zone: 3.97-4.00 (potential resistance as Wave 5 completes).
RSI Confirmation:
- RSI on lower timeframes (e.g., 4H and 1D) shows no bearish divergence, which supports continued bullish momentum for Wave 5.
Trade Setup:
- Entry: around 3.52.
- Stop Loss: Below the wave 4 low at 3.39 to minimize risk.
- Take Profit: Target Wav 5 completion at 3.97-4.00.
- Risk-Reward Ratio: Approx. 1:3
“Trade what you see, not what you feel.”
Stick to your analysis and avoid chasing the market if the price fails to confirm Wave 5.
Always use proper risk management. Allocate no more than 1-2% of your account balance to this trade to ensure sustainability.
Patience is a trader's greatest asset!
Happy trading! 🚀
Disclaimer:
This idea is for educational purposes only and not financial advice. Always do your due diligence and consult a professional before making any trading decisions. Trading involves significant risk, and past performance is not indicative of future results.
