Tradeweb Stock: Cannot Ask for a Clearer Pattern

Bullish   

Tradeweb Markets Inc. is a financial assets electronic marketplaces operator, headquartered in New York. The company was founded in 1996, but only went public in the spring of 2019. With a market cap of $13B and annual revenue north of $1.2B, Tradeweb certainly has its place in the financial services industry. Its valuation, however, has actually been cut almost in half since the beginning of 2022.

The stock currently trades below $56 a share, which is a far cry from its $102.33 record reached in the last days of 2021. Given the company’s healthy growth rate, profitability and debt-free balance sheet, the problem is obviously not in its fundamentals. In our opinion, the stock has been falling merely because it was overvalued. Whether it is undervalued now is another matter, but Elliott Wave analysis suggests a bottom might be near.

Tradeweb stock searching for an Elliott Wave bottom

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!

Tradeweb ‘s daily chart reveals that the 2022 decline is shaped as a textbook five-wave impulse. The pattern is labeled 1-through-5 in what should be wave A of a bigger A-B-C correction. Notice how the 61.8% and 38.2% Fibonacci resistance levels relative to waves 1 and 3 marked the end of waves 2 and 4, respectively.

According to the theory, a three-wave correction follows every impulse. In Tradeweb ‘s case, this means we should expect a notable recovery in wave B towards the termination area of wave 4 of A. If this count is correct, shares can rise by over $20 from here. A bullish MACD divergence between waves 3 and 5 supports the mid-term positive outlook.

Once the price has approached the $75 – $80 area, however, it would be time for the bears to return in wave C. Downside targets below $50 would make sense once they do. If Tradeweb ‘s business is still as solid then as it is now, the stock would be a real bargain at some point in 2023.

In our Elliott Wave PRO subscriptions we provide analyses of Bitcoin, Gold, Crude Oil, EURUSD, USDCAD, USDJPY and the S&P 500 twice a week! Check them out now!

New to Elliott Wave?

Elliott Wave principle offers a completely new understanding of what the nature of the markets is, what drives them and what can be derived from their movement. This course is for those of you, who have been looking for an honest Elliott Wave guide, describing the method’s advantages over other trading tools, but not hiding its weaknesses.

Check Video Course    or     Check our eBook


See our Video Course
or check our eBook

Last year over 60k readers trusted EWM Interactive to help them in their trading decisions.

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- Xavier N.

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- J. Kotzee

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- C. Montgomery

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- C. Montgomery