When I previously Arcimoto, back in July 2021, the stock looked promising for the next leg higher. The market had yet to confirm the view and the 7.27 low needed to hold. The market had other ideas and invalidated that low, which sets up the next potential bottom currently present in this chart. In summary, Arcimoto is an electric vehicle company headquartered in Eugene, Oregon. Arcimoto manufactures and sells the Fun Utility Vehicle, or FUV, a tandem two-seat, three-wheeled electric vehicle. They also sell van-variations on the design “Rapid Responder” for emergency services, and “Deliverator” for last-mile deliveries. With that out of the way, lets take a look at the last summer view:
Arcimoto Elliottwave View July 2021:
As you can see, the market did look constructive off the red II low. However, it ended up rallying in one more high above (1), which turned into 3 waves instead of a 5 waves impulsive off Red II low.
Lets take a look at the current view and see what the instrument ended up doing.
Arcimoto Elliottwave View March 2022:
Medium term term view from the peak set in Feb 2021. It has been about a year since the peak in Red I. The recent low at Red II does come with nice low momentum against the ((W)), confirming that this move is still corrective. If the momentum was diverging against ((W)), then it would look more bearish. As long as the lows from Feb 24 remain intact, the next leg higher can be underway. However, it should be noted that the indices $SPY are still currently favouring another leg lower to take place. I don’t like to chase this move in Arcimoto, it would be best to wait for 5 waves up into blue (1) at least, and then perhaps a hedge trade in (2) may present itself.