$SIE: Join the Siemens rally in a pullback from all-time highs

Siemens SE is a German multinational conglomerate company and by revenue the largest industrial manufacturing enterprise in Europe. Company’s principal business divisions are Industry, Energy, Healthcare, Infrastructure & Cities. Founded in 1847 and headquartered in Munich, Germany, the company employs approx. 385’ooo people worldwide. Siemens is a part of both DAX40 and of SX5E indices. One can note that the economic success of the company is truly accompanied by a strong performance of the Siemens stock.

In the initial article from February 2021, we have forecasted a rally to the new highs. We were right. The price has printed the new all-time highs in January 2022 at 157.96. Then, we saw the stock price pulling back from the all-time highs. In the article from June 2022, we have expected a rally to take place after doing zigzag lower. However, March 2022 lows have broken and the market has decided to do a double correction before turning higher. In the last article from January 2023, we have analyzed the structure of the price movement and have forecasted a break to the new all-time highs. We were right. The price printed new highs at €167. In the current blog, we take a look again on the wave structure, show next buying oppportunity in 3 swings from extremes and provide with the targets.

Siemens monthly Elliott Wave analysis 08.20.2023

The monthly chart below shows the Siemens stock $SIE traded at XETRA. From the all-time lows, the stock price has developed a cycle higher in black wave ((I)) of grand super cycle degree towards May 2001 highs at 89.75. From there, a correction lower in black wave ((II)) has unfolded as an Elliott wave expanded flat pattern. It has printed an important bottom on October 2008 at 32.07. From October 2008 lows, a new cycle in wave ((III)) has been already confirmed by breaking above 89.75 highs.

A closer look on the price action from 2008 lows unveils the development of another nest being blue wave (I) of black wave ((III)). The 2008 cycle has reached towards 133.50 on May 2017. From there, a correction has unfolded as a zigzag structure in wave (II). The consolidation has ended in March 2020 at 58.77. While above there, Siemens is already within blue wave (III). A target for wave (III) is 159.95-222.60 area and beyond. Within larger wave (III), one can distinguish already a first nest comprising red waves I and II. While above July 2022 lows, red wave III is in progress. Break above the 157.96 high has confirmed that. The target for red wave III will be 192.92-254.30 area and even higher.

Siemens daily Elliott Wave analysis 08.20.2023

The daily chart below shows in more detail the first stages of the advance higher in red wave III from July 2022 lows. As a matter of fact, break above the January 2022 highs has confirmed next extension in wave III. Within it, one can see already an impulse higher in black wave ((1)) containing 5 waves. Hereby, blue wave (3) shows an extension beyond 2.618x of the blue wave (1). It is the preffered view that black wave ((1)) has ended at new all-time highs in June 2023. From the peak at €167, a pullback in wave ((2)) is taking place. Firstly, blue wave (W) has set a short-term low at €141.46 in July 2023. Secondly, bounce in blue wave (X) has set a connector at €156.32 lower highs. Then, price broken €141.46 lows opening up a bearish sequence. Now, blue wave (Y) is in progress and should reach lower towards 130.67-114.83 area. Investors and traders can be looking to buy pullback in black wave ((2)) from 130.67-114.83 area targeting 192.92-254.30 area and even higher.