BMO: Expect a larger correction before rally resumes

Bank of Montreal (BMO) provides diversified financial services primarily in North America. The company provides personal banking products & services as well as commercial banking products & services. It is based in Montreal, Canada, comes under Financial services sector & trades as “BMO” at NYSE.

BMO started impulse from $38.31 low on 3/18/2022 low & made all time high of $122.77 high. Currently, it favors pullback of II lower in proposed zigzag structure & favors ((B)) leg bounce before downside resumes.

BMO – Elliott Wave latest daily view 

It made an intermediate low of $38.31 low on 3/18/2022 low. It placed ((1)) at $55.34 high & ((2)) at $43.26 low. ((2)) was dips pullback below 0.618 Fibonacci retracement of ((1)) before rally resumes. Above there, it started third wave extension & ((3)) ended at $106.88 on 6/04/2021 high. It favored ended ((4)) at $95.37 low on 7/20/2021 as shallow correction. It finally ended ((5)) as ending diagonal at $122.77 as ATH on 3/22/2022 as wave I. Below there, it favors pullback in wave II as zigzag lower.

Below ATH of $122.77, it placed ((A)) at $90.44 low on 7/14/2022. Currently, it favors a pullback of (B) of ((B)) before upside resumes in final move higher in (C) of ((B)). Ideally, it should fail below ATH & resumes lower in ((C)) leg. We like to buy the dips towards extreme areas in ((C)) leg, when reached.