$EH: Buying Guangzhou EHang Stock in a Zigzag Pullback

Guangzhou EHang Intelligent Technology Co. Ltd. is a Chinese designer and manufacturer of autonomous aerial vehicles (AAVs) and passenger AAVs. These products have entered service in China for aerial cinematography, photography, emergency response and survey missions.  Founded 2014, EHang is headquartered in Guangzhou, China. One can trade it under the ticker $EH at NASDAQ.

EHang Weekly Elliott Wave Analysis 12.31.2023

The weekly chart below shows the EHang shares $EH traded at NASDAQ. From the all-time lows, the stock price has developed an initial cycle higher in blue wave (I) of super cycle degree towards 129.80 all-time highs in February 2021. After the impulsive structure higher, a correction lower in blue wave (II) has unfolded as an Elliott wave zigzag pattern being 5-3-5 structure.

Firstly, red wave a of blue wave (II) has printed a low at 19.75 in May 2021. Then, a bounce has set a connector wave b at 47.38 highs in June of the same year. Later on, the price has broken 19.75 lows opening up next extension lower. It is the preferred view that red wave c has found an important bottom in October 2022. While above 3.32 lows, a new bullish cycle in blue wave (III) might have started and is now in the initial stages.

EHang Daily Elliott Wave Analysis 12.31.2023

The daily chart below shows in more detail the initial nest consisting of black waves ((1))-((2)) in progress. From the October 2022 lows, black wave ((1)) of red wave I has ended in October 2023. It has the pattern of a leading diagonal being a 5-3-5-3-5 structure. From the 25.78 highs, correction  in wave ((2)) should provide an opportunity for an acceleration higher in black wave ((3)). It unfolds as a zigzag pattern. Firstly, from the October 2023, an impulse lower of blue (A) have set a low at 12.30 in November 2023. Secondly, a bounce in blue wave (B) has printed a connector high at 19.78. Now, $EH might have started another cycle in blue wave (C). It should reach 6.33-3.32 area. Then, expect acceration in black wave ((3)) towards 25.78 and beyond to take place.

Investors and traders can be using 6.33-3.32 bluebox area as a buying opportunity in $EH targeting 25.78 and higher in short-term and 129.80 and beyond in the long run.

EHang Holdings Elliott Wave Daily

Source: https://elliottwave-forecast.com/stock-market/buying-opportunity-ehang/