Counting the waves…
Counting the waves…
NRN Elliott Wave: 4th Wave Triangle Intact
"NRN in 4th wave triangle, may consolidation continues for few more weeks"
Signal: bullish
Current Elliott Wave count: Wave 4th
Our preferred count for NRN suggests that the stock is currently navigating an 4th wave triangle, despite the 2nd wave being a shallow correction and the 4th wave typically requiring a sharp retracement. However, the consolidation pattern is taking on a triangular shape, which is consistent with our analysis. Notably, a key observation on the NRN chart is that every 2nd wave correction has been shallow, and similarly, the 4th wave has also failed to retrace sharply, instead forming a shallow correction. This unique pattern on NRN suggests that the current 4th wave triangle is still intact, and we may see further consolidation, potentially still within the ((d)) wave of the 4th wave triangle. Key levels to watch are 1280, below which we would recommend using a stop-loss, and 1202.10, a break below which would invalidate the 4th wave triangle pattern altogether, prompting a switch to an alternative count.
As an alternative scenario for the NRN, we may be due for a sharp retracement in the 4th wave, potentially unfolding as a complex correction. Currently, it appears we are navigating the (c) wave of the ((y)) wave within the 4th wave. If our preferred count is invalidated, this alternative count will take precedence. To complete the 4th wave correction, the NRN may decline towards the 1133-1077 range, representing a deep 4th wave retracement. However, if the drop extends and touches the 860.70 level, the entire count will be rendered invalid. Until the ((x)) wave is breached, we remain in correction mode; a break of this level would indicate a transition into the 5th wave.
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