IEA Technical Analysis
Updated
In June of 2020 IEA moved into a very well-defined Elliot Wave cycle with the price action peaking at around 24 dollars in January of 2021. The Elliot wave appears to have ended sometime between February and March of 2021 and moved into a very predictable horizontal channel after a failed double bottom confirmation on 31 March 2021. The horizontal price channel is on track to setup a triple bottom and could be a consolidation phase following the end of the first Elliot Wave cycle. This price action could offer two possible trade opportunities:
* 1. Short Term swing Trade
If IEA confirms support at the bottom of the channel again there is a good chance of another $3-$5 short-term price movement, which could be capitalized on even if a failed breakout follows.
* 2. Longer-Term Investment following confirmation of new Elliot Wave Cycle.
This entry point is determined by personal risk tolerance and trade confirmation preferences, but a triple bottom confirmation and breakout could be the start of a new Elliot Wave with the potential to move the price above the previous 24 dollar high. IEA
could stand to benefit from the proposed Infrastructure Bill set forth by the Biden Administration which includes funding for Green Infrastructure construction, so there is a possible catalyst for the market sentiment needed to drive a new Elliot wave.
As always, proper due diligence should be performed before entering into any trades, and this should not be taken as direct advice.
* 1. Short Term swing Trade
If IEA confirms support at the bottom of the channel again there is a good chance of another $3-$5 short-term price movement, which could be capitalized on even if a failed breakout follows.
* 2. Longer-Term Investment following confirmation of new Elliot Wave Cycle.
This entry point is determined by personal risk tolerance and trade confirmation preferences, but a triple bottom confirmation and breakout could be the start of a new Elliot Wave with the potential to move the price above the previous 24 dollar high. IEA
could stand to benefit from the proposed Infrastructure Bill set forth by the Biden Administration which includes funding for Green Infrastructure construction, so there is a possible catalyst for the market sentiment needed to drive a new Elliot wave.
As always, proper due diligence should be performed before entering into any trades, and this should not be taken as direct advice.
Note
The support level around $13 broke down, and IEA fell to ~11.50 before catching another support level. The breakdown triggered a stop loss on my trade entry.The previous support now appears to be acting as a resistance level. I think the trend is now at a critical juncture. If IEA is rejected at this resistance it could fall into a downward bearish trend with lower highs. If on the other hand it can push past this resistance, a downward channel with 4 points of contact is confirmed.
If this happens, it is likely to retrace upwards to near the 14-15 high volume node. I've set an alert for 13.90. If IEA crosses this point, and still has decent momentum, there is potential for a short term 1 dollar swing trade.
However, I do think there is a good chance that IEA needs to consolidate around 11 dollars for longer period of time.
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