I have been following CIGNITITEC since it did a clean 5 wave impulse since May 2022 lows. After the impulse, it did a retracement which completed near previous degree 4th wave in November 2022. From that point, it again did a clean 5 wave impulse up, which I think is just the wave 1 or larger degree wave 3. And that impulse followed by a deep retracement in wave 2.
Everything seem textbook so far in terms of EW counts. Last week we got a positive close which makes me wonder if we have started wave 3 of 3 which could potentially be fiercest and of decent size. The last week’s move also took out the high of wave 1 which adds to the view.
If I have to make an guess based on current counts, I see a possibility of the stock moving up at least 50% or more from these levels in next few weeks, unless something drastically changes in global macros or IT industry.
Disclaimer: Purpose of this post is to educate on technical analysis methodologies and not giving trading/investing advice.
