$HEI: German HeidelbergCement reacting from daily buying area

HeidelbergCement is a German multinational building materials company. Today, it is the largest producer of construction aggregates in the world. It is number 2 in production of cement and number 3 worldwide in ready mixed concrete. Founded in 1874 and headquartered in Heidelberg, Germany, HeidelbergCement is a part of DAX40 index. One can trade it under the ticker $HEI at XETRA.

In the initial article from October 2021, we have explained that the pullback from April 2021 offers an opportunity. Later, in August 2022, we have identified next support area. The price has reached that area and shows a reaction higher in 5 waves. In the present article, we provide an update while discussing price patterns and targets.

HeidelbergCement monthly Elliott Wave analysis 04.12.2023

The monthly chart below shows the HeidelbergCement stock $HEI traded at XETRA. From all-time lows, the stock price has developed a strong initial nest. Just to recall: A nest is a sum of waves 1 and 2 of the same degree. First, black wave ((I)) has ended in May 2006 at 96.11. Then, wave ((II)) has corrected the cycle higher within an expanded flat structure lower. Hereby, wave (b) of ((II)) has printed the all-time highs in April 2007 at 112.03. The consolidation within wave ((II)) has ended in February 2009 at 18.01.

From February 2009 low, a new cycle in wave ((III)) has started. Break above 112.03 highs will confirm that. Within wave ((III)), $HEI is showing a series of nests. First, waves (I)-(II) have ended on March 2020 at 29.00. From there, a second nest is also in place. First, red wave I has ended in April 2021 at 81.04. Then, red wave II has found a bottom in September 2022 at 38.73 lows. While above there, acceleration higher in red III of blue wave (III) of black wave ((III)) is taking place.

HeidelbergCement daily Elliott Wave analysis 04.12.2023

The Daily chart below shows in more detail the pullback in wave II from the April 2021 peak at 81.04 and reaction higher within wave III from the blue box area. The consolidation pattern in red wave II is most likely a zigzag pattern. First, impulse in black wave ((A)) has found its bottom in December 2021 at 56.60. Then, a bounce in black wave ((B)) has set connector in February 2022 at 68.08 (both not shown). From there, ending diagonal in wave ((C)) being 3-3-3-3-3 structure has reached into 43.59-29.00 blue box area.

Investors and traders who bought $HEI from 43.59-29.00 area could enjoy the rally in red wave III and should further stay long. The advance from 38.73 lows in black wave ((1)) of red wave III looks mature. Soon, a pullback in black wave ((2)) should allow joining the rally. Hereby, one can buy dips in $HEI in 3, 7, 11 swings against 38.73 lows. Once wave ((2)) ended, further acceleration higher in black wave ((3)) of red wave III should take place. The target for red wave III is 90.68-122.83 area and beyond. As an outlook, blue wave (III) of ((III)) should extend towards 107.22-155.52 area and possibly higher. The target for the entire wave ((III)) will be 114.42-174.01 area. Buying dips in $HEI offer, therefore, a high profit potential for those who would like to diversify their portfolio by indirect investment in commodities and construction business.