In the middle of February BNP Paribas stock reached as high as 61.80, but was unable to keep that bullish momentum. Currently trading around 50.00, the time is appropriate to check how low prices could extend their downtrend.
It is a very interesting sequence on the 4-hour chart of BNP Paribas. Starting from the top we have A-B-C for (W), where wave B is an expanding triangle. Then there is another three-wave sequence in (X) to connect (W) with (Y), which is another A-B-C down. So far, this is a double zig-zag. After the end of (Y) there is a triangle again, but this time a contracting one. We label it as the second (X) wave. Triangles precede the final movement of the larger sequence. That is why we expect another A-B-C for (Z) to complete the whole triple zig-zag corrective pattern. If this is the correct count, wave C of (Z) should make one last new bottom before the uptrend could resume. Corrections are fully retraced. Since the whole price action from the top at 61.80 is a correction, chances are good for 62.00 to be reached and exceeded during the next few months.
