$BAYN : Bayer Should Resume Rally To New Highs Or Recover In 3 Waves Minimum

Bayer Ag is one of the largest pharmaceutical companies in the world. Founded in 1863 and headquartered in Leverkusen, Germany, Bayer’s most famous product was aspirin. Today, the company is a part of DAX30 and of SX5E indices. In recent weeks, as all major pharmaceutical companies, Bayer contributes also actively in the fight against COVID-19. If that action will help the stock price to recover?

Bayer Monthly Elliott Wave Analysis 04.26.2020

The triangle in wave IV has resolved in a thrust higher in wave V. Within the super cycle, it is the 5th wave extension which we can see in the monthly chart. Finally, RSI divergence between wave V and wave III is a sign of the cycle maturity. As a general rule, 5 waves up require a correction in 3 waves lower. Once the consolidation is over, only then the trend up can resume.

Bayer Weekly Elliott Wave Analysis 04.26.2020

Now, the wave ((3)) of c has ended at 52.00 reaching the equal legs extension area of 1.0–1.618 multiple of the length of the wave a (s. blue box area). The bounce from the blue box to the 78.25 level is sharp and broke the RSI channel to the upside. However, the price has retraced less than 50% of the wave ((3)) and has respected the price action resistance line. These features together with incomplete look of the decline from the 06,2017 highs favor counting the rise and the subsequent fall to new lows as the waves ((4)) and ((5)) of the cycle lower in wave c.

Bayer Daily Elliott Wave Analysis 04.26.2020 and Outlook



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