May. 22 at 8:55 PM
$LULU
The Wave 1 Target (The Initial Bounce)
The first wave of a new cycle typically retraces a portion of the previous decline
* Common Target: 38.2% to 50% of the entire A-B-C move.
* Lululemon Example: If the drop was from
$516 to
$119 (
$397 drop), a standard Wave 1 might target
$270 –
$315.
The Wave 3 Projection (The "Money" Wave)
This is where the real gains are made. In a new cycle, Wave 3 is usually the largest.
* The Math: Wave 3 is typically 161.8% of the length of the new Wave 1.
* Relationship to old A-Wave: In many powerful recoveries, the combined height of Waves 1 through 3 often matches or exceeds the total height of the previous major A-wave.
We are looking at 480 plus with patience ….
