“We expect the bulls to return soon and probably take BMW above the 100 euro mark.” This is the final sentence in “More Gains Ahead For BMW”, which was published on October 9th, 2014, when the BMW AG’s stock was trading close to 80. As usual, the only method we used to form our bullish expectations was the Elliott Wave Principle. You can see it applied on the chart below. It shows BMW as it was more than four months ago.
Soon after the forecast, prices fell to 74.60. This forced us to do a little relabeling. However, the wave structure was still incomplete so we were still looking at BMW from the bullish side. The next chart depicts how the German automaker’s stock looks like now.
As visible, BMW rocketed well above the 100 euro mark. Two days ago, it closed the last week near 107.70. From now on there are two scenarios. The first one is given on the above-shown chart. It suggests BMW has almost finished wave (3/C) and we should prepare for at least a temporary pull-back. But the vertical slope and the strength of the recent advance made us think of another possible count.
According to it, BMW has just begun wave iii of 3 of (3/C), which is supposed to be the strongest part of the trend. If this assumption is correct, we could soon witness much higher levels. Right now, the proper approach is to stay with the current trend, but be prepared for both alternatives.
