On May 2nd 2014 we showed you a forecast of Daimler AG stock, saying that “we are expecting a third leg up in wave (c) of (2)/B, before the downtrend resumes. This count would be invalidated, if Daimler AG goes above 71.25, while the minimum downside target is below 63.95.” The chart, on which this statement was based, is given below.
There has been a lot of price action during the last the three months since that forecast. Probably there have been a lot of news and reports concerning Daimler AG in particular or all German stocks in general, but as you should know, we do not need such information and we do not follow it. All of our predictions are based on applying The Elliott Wave Principle to the price charts of financial instruments. Having that in mind, let’s see an updated chart of Daimler AG stock.
As you can notice, despite not using any information, considered important by mainstream analysts, we managed to forecast Daimler AG stock behavior quite well. The chart depicts, that soon after May 2nd, prices started rising in wave (c) of (2)/B just as expected. We have to say that this retracement turned out to be a deep one. However, it did not reach our invalidation level of 71.25, where the protective stop should be. Instead of this, the downtrend resumed from 70.76. On July 28th the minimum target of 63.95 has been hit. Daimler AG stock is currently trading around 61.30 and a further devaluation is not impossible. Once again, not one, but two consecutive large movements have been predicted, all thanks to R.N. Elliott‘s Wave Principle.
