BMW is one of the biggest german car manufacturers excelling in quality and technical characteristics. In April 2020, we were calling for a begin of a new cycle higher. We were right, the price has more than doubled. Now, medium-term cycle might be ending and many investors are asking themselves if there will be straight continuation of the rally or a pullback. Here, we present an updated view on BMW stock.
BMW Monthly Elliott Wave Analysis 06.20.2021
The monthly chart below shows the BMW stock $BMW traded at XETRA. From all-time lows, the stock price has developed an Elliott wave motive wave pattern. The cycle up in blue wave (I) being of super cycle degree has ended by printing the all-time highs on March 2015 at 123.80. Within the super cycle in wave (I), the red waves I, III and V of cycle degree are also motive waves. Moreover, wave III shows an extension.
From the March 2015 highs, a correction in wave (II) has unfolded as a double three pattern, i.e., a 7 swings structure. As correctly called in the initial article, it has printed an important bottom in March 2020 at 36.47. From there, a new cycle in blue wave (III) has started and should reach towards 123.75 highs and even higher.
BMW Daily Elliott Wave Analysis 06.20.2021
The daily chart below shows in more detail the advance higher in red wave I of blue wave (III). First, black wave ((1)) of red wave I has developed a leading diagonal pattern ended in October 2020 at 66.41. From there, a pullback in wave ((2)) has found a bottom at 57.25. While above there, wave ((3)) should reach towards 87.08-105.59 area. Even though the minimum target has been reached, still we favor more upside in wave ((3)). Then, a pullback in wave ((4)) and a final push in wave ((5)) should take place to end the cycle from March 2020 in wave I.
Investors should not chase the BMW stock at current prices. Since the world indices might be ending their cycles from March 2020 in the second half of 2021, it is reasonable to wait for a pullback in the BMW stock as well. Investors and traders can be looking to buy $BMW in a pullback against 36.47 lows in 3, 7 or 11 swings targeting 159.70-235.90 area in a long run.