Pool corporation (POOL) pullback nearing completion

Pool Corporation (POOL) remains within a larger bullish Elliott Wave structure despite the sharp decline from its 2021 peak. The stock completed a strong impulsive rally into wave (I) after a powerful advance from the 2009 lows. This move reflected strong momentum and consistent buying pressure over several years.

After completing wave (I), POOL entered a larger corrective phase in wave (II). The decline has unfolded through a complex corrective structure and continues to pressure price lower. From the chart, the correction still appears incomplete, suggesting the stock may need one more leg lower before wave (II) fully ends. The current structure shows the market progressing through the later stages of the correction. Price has already delivered a substantial decline from the highs, but the Elliott Wave sequence still favors additional downside before a durable bottom forms.

POOL Wave (II) support zone and wave (III) outlook

Based on the projected structure, wave (II) may extend toward the 123 region before finding stronger support. This level aligns with a key Fibonacci projection and marks an important technical area where buyers could return. The chart also suggests the decline may complete a larger five-wave sequence before the correction finishes.

In the short term, the market may continue to experience volatility and downside swings. However, once wave (II) completes near the projected support zone, the stock should begin a new bullish cycle in wave (III). Third waves often represent the strongest phase within an Elliott Wave structure and usually generate sustained upside momentum.

The long-term bullish trend remains valid as long as the broader structure holds above the major invalidation level near 8.76.

Summary

Pool Corporation continues to correct within wave (II) after completing a major bullish cycle in wave (I). The decline may extend toward the 123 area before wave (II) completes. Once the correction ends, a strong bullish recovery in wave (III) should begin and support renewed upside over the long term.