The last time we talked about Carrefour was on October 1st, 2014, in “Future Looks Bright For Carrefour”. When this material was published, the stock was sharply falling. Nevertheless, the Elliott Wave Principle allowed us to be optimistic. The next chart shows how Carrefour was trading, when that bullish forecast was made.
As visible, we had a perfect five-wave impulse to the upside, followed by a three-wave retracement. If you are familiar with the Wave Principle, you know this combination of patterns leads to new highs. This chart alone was more than enough for us to start looking for a bottom soon. On the chart below you can see we did not have to wait long for it.
Carrefour bottomed in the middle of October 2014 and has been rising ever since. Today, the stock is trading close to the 30 euro mark and it seems to be only a matter of time before it is taken out. This is a great example of the Wave Principle’s ability to prepare you for upcoming moves. Furthermore, all you need is a chart, nothing else.
