$JSEOMU - Old Mutual Ltd: Bullish Elliott Wave Sequence
Old Mutual stock has traded generally sideways since bottoming in March 2020 after the covid-19 market sell-off.
The sideways trend serves as a reminder of the importance of fundamentals to equity trading and investing.
From an EWP perspective however, I see patterns galore that are indicative of further upside in the short to medium-term.
The choppy move from 924 zac to 1701 zac is best labelled as a leading diagonal with its overlapping waves labelled wave (1) to wave (5).
The correction, which seems to have bottomed at 921 zac, is a zigzag labelled wave (A) to wave (C).
Within the zigzag we have wave (A) as an impulse, wave (B) as a triangle and wave (C) an ending diagonal.
What is critical is that the correction remained above 924 zac.
Looking forward, price must remain above 921 zac for the bullish outlook to remain valid.
In the short-term, 986 zac can also be viewed as a secondary critical level.
The MACD also adds to the positive outlook.
The bounce from 921 zac to 1182 zac was preceded by MACD/price convergence.
The MACD is again breaking above the zero line and has given a MACD crossover buy signal.
The sideways trend serves as a reminder of the importance of fundamentals to equity trading and investing.
From an EWP perspective however, I see patterns galore that are indicative of further upside in the short to medium-term.
The choppy move from 924 zac to 1701 zac is best labelled as a leading diagonal with its overlapping waves labelled wave (1) to wave (5).
The correction, which seems to have bottomed at 921 zac, is a zigzag labelled wave (A) to wave (C).
Within the zigzag we have wave (A) as an impulse, wave (B) as a triangle and wave (C) an ending diagonal.
What is critical is that the correction remained above 924 zac.
Looking forward, price must remain above 921 zac for the bullish outlook to remain valid.
In the short-term, 986 zac can also be viewed as a secondary critical level.
The MACD also adds to the positive outlook.
The bounce from 921 zac to 1182 zac was preceded by MACD/price convergence.
The MACD is again breaking above the zero line and has given a MACD crossover buy signal.
