Founded in 1988, Alten SA is a global engineering and technology consulting services company, headquartered in France. Investors’ enthusiasm for the stock faded away along with the post-pandemic demand boom. Excluding acquisitions, revenue is expected to decline by more than 5% in 2025 and recovery signs have yet to emerge for 2026. No wonder the stock is down by more than 50% from its record highs above €160 reached a few years ago.
But as most other businesses, this one is cyclical, as well. Its currently weak results could look very differently in the positive phase of the cycle. The question is, can a recovery be expected? Knowing that the market would likely sense it long before Alten’s financial statements begin to reflect it, we looked at the chart below to see if an Elliott Wave reason for optimism can already be found.
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The weekly chart of Alten stock shows that the 20-year uptrend between 2002 and 2022 was a textbook five-wave impulse. We’ve marked the pattern (1)-(2)-(3)-(4)-(5), where the five sub-waves of (3) are also visible and labeled 1-2-3-4-5. A three-wave correction follows every impulse and that’s exactly what the current slump stands for.
It can be seen as an (a)-(b)-(c) flat correction, whose impulsive wave (c) has already touched the 61.8% Fibonacci support level. If this count is correct, a bullish reversal can soon be expected to initiate the resumption of the preceding uptrend. Given that Alten trades at roughly 10 times normalized free cash flow, one can make the case that the stock is also a bargain near €70 per share.
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