$PEPE: Triangle Breakout Targeting New Highs?
Updated
Meme stocks have been consolidating recently, and 
PEPE appears poised for a breakout. A bullish triangle pattern has formed on the chart, suggesting a potential move to new highs if confirmed.
Applying Elliott Wave Theory, we can see a potential five-wave impulse move up from the April 5th low. The recent retracement found support at a critical level - the 78.6% Fibonacci retracement of wave (i). This is a significant bullish sign.
While my outlook is bullish, a short-term pullback (around 10%) suggested by the orange line could occur to shake out weak hands before the next leg up.
The key support level to watch is the 78.6% Fibonacci retracement. A break below this level would weaken the bullish case.
So, overall, the technical indicators forPEPE are bullish. A confirmed breakout from the triangle pattern and continued support above the 78.6% Fibonacci level could take it ttowards new highs.
PEPE appears poised for a breakout. A bullish triangle pattern has formed on the chart, suggesting a potential move to new highs if confirmed.Applying Elliott Wave Theory, we can see a potential five-wave impulse move up from the April 5th low. The recent retracement found support at a critical level - the 78.6% Fibonacci retracement of wave (i). This is a significant bullish sign.
While my outlook is bullish, a short-term pullback (around 10%) suggested by the orange line could occur to shake out weak hands before the next leg up.
The key support level to watch is the 78.6% Fibonacci retracement. A break below this level would weaken the bullish case.
So, overall, the technical indicators for
PEPE are bullish. A confirmed breakout from the triangle pattern and continued support above the 78.6% Fibonacci level could take it ttowards new highs.Note
We got the expected correction of 10%.Now is the last chance for bulls to take over.
If price does not reverse right without going any lower, it means my wave i count is incorrect along with wave E, which then would confirm the impulsive wave count of E.
In that case, we can expect probably a 25% continued drop from current price.
So, it remains a sellers market.
Note
Bulls are dead. No need to waste your time with this name anymore unless we see a considerable reversal coming days.
My wave count error :
Note
That 25% drop came FAST!This is a harsh reminder of the importance of stop-loss orders on ALL positions. Even the best analysis can be surprised by sudden market movements.
This is why the Elliott Wave theory can be a powerful tool for identifying potential reversal zones. By understanding wave patterns, we can anticipate not just entries, but most importantly potential exits if the price action doesn't follow our plan.
It helps us :
- Reduce risk: Proper stop-loss placement based on Elliott Wave levels can significantly minimize losses on losing trades!
- Improve discipline: Knowing pre-defined exit points based on wave structure helps us avoid making emotional trading decisions.
- Adapt to the market: Elliott Wave allows us to identify trend changes and adjust our positions accordingly, reducing the chances of getting caught in surprise moves.
Note
By the way, current rise in price seem to be a counter trend move, therefor, look to short it if you can as we should see a another 25% drop and probably even more !Note
30% drop it is.RSI and Stochastic suggest we could see price start to climb now but it's not an easy buy imho. Remember just because an oscillator is overbought/oversold, doesn't mean price will start to reverse! Price can continue to drop >20% in this case while RSI still remains oversold.
So, here I believe we could see another 10% to 20% drop.
Careful tho, it's not an easy short either unlike the previous one.
In this setup you have to be nimble, take smaller profits and be quicker to get out if you see price go against you!
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Questions? Chat or Comment on Ideas
Don't forget my public Telegram channel -
t.me/em16public
Thanks !
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