UNL Elliott Wave: Triangle in Wave 4

UNL forms a 4th wave triangle, potentially paving way for a price target of 60,000

Signal: bullish

• Preferred levels:
• Target: 60000
• Stop Loss: 45200
• Invalidation: 45200

UNL, the most expensive company listed on the NEPSE, appears to be forming a 4th wave triangle consolidation. According to our preferred Elliott Wave count, this could potentially pave the way for a price target of 60,000 in the near future, although this remains speculative at this point. For the time being, it's essential to maintain a stop-loss (SL) below 45,200, as a breach of this level would invalidate the triangle pattern and prompt a reevaluation of our analysis. Notably, the 2nd wave experienced a deep correction, and in line with the principle of alternation, the 4th wave is unfolding as a consolidation pattern. It's also worth noting that, as per Elliott Wave rules, the 3rd wave cannot be the shortest wave in this sequence, and for our count to remain valid, the 5th wave should not exceed the magnitude of the 3rd wave. If these conditions are not met, we may need to reconsider our count and potentially switch to a 1-2, 1-2 correction pattern. Furthermore, if the correction deepens in the future, we may need to adjust our analysis to reflect a 1-2, 1-2 series rather than the current count.

In an alternative scenario, the stock may pull back to the 38.2% Fibonacci level, a common correction zone for a 4th wave in an Elliott Wave sequence. Another possibility is that the stock is forming a flat pattern for the 4th wave. As such, it's crucial to keep a close eye on its price action to gauge the next likely direction. If the retracement exceeds the 38.2% area, we would need to reconsider our count, potentially shifting to a 1-2, 1-2 series rather than a 4th wave.