Continental is a German multinational automotive parts manufacturing company. It is specializing in brake systems, interior electronics, tachographs, automotive safety, powertrain and chassis components, tires and other parts for the automotive and transportation industries. Founded in 1871 and headquartered in Hanover, Germany, Continental is a part of DAX30 index. From the all-time lows, the stock price is showing a series of nests. It is expected to accelerate higher towards the new all-time highs.
Continental Monthly Elliott Wave Analysis 01.24.2021
The monthly chart below shows the Coninental stock $CON traded at XETRA. From the all-time lows, Continental has developed a cycle higher in black wave ((I)) of a grand super cycle degree. It has printed the top on July 2007 at 108.18. From there, a correction lower in black wave (II) has retraced 90% of the rise. Hereby, it has found its bottom on February 2009 at 9.79.
Later on, from Febraury 2009 lows, a cycle in wave ((III)) higher has been confirmed by breaking above 108.18 highs. The advance towards 234.25 highs in March 2015 has extended beyond 1.618 of the wave ((I)). On the one hand, the rise could be all of the wave ((III)). On the other hand, the RSI reading tells a contrary story. Indeed, the RSI reading of the top is lower than that of the wave ((I)). As a conclusion, this suggests that the advance is only the 1st wave of the wave ((III)), i.e., blue wave (I).
From the March 2015 highs, a correction lower as an expanded flat in blue wave (II) has bottomed in March 2020 at 51.45. From there, the wave (III) of ((III)) might be in first stages and should break to new all-time highs. The target higher for the wave (III) is the 1.0-1.618 extension of the wave (I) being 276.86-416.20 area and even higher.
Continental Daily Elliott Wave Analysis 01.24.2021
The daily chart below shows the advance higher in black wave ((1)) of red wave I of blue wave (III). First, from the March 2020 lows at 51.45, a cycle higher in blue wave (1) has unfolded as a leading diagonal. It has printed its top in October 2020 at 103.90. Then, a correction lower in blue wave (2) has been accomplished on 30th of October at 88.50. From the lows, the wave (3) higher has been confirmed by breaking above 103.90 highs. Now, while above 88.50, wave (3) should extend further and reach towards 1.0-1.618 extension of the wave (1) being 141.07-173.44 and even beyond.
The pullbacks should find support above 88.50 lows. Right now, while below 123.60, $CON can fall lower into 111.86-104.52 blue box extension area where buyers may enter the market for a rally in minor wave 3 or for a bounce in 3 waves at least.