Unity Software (U) - long trade
After a downside rally caused by the completion of an ABC correction, we have now entered a new impulse. It started in May 2023 and has already seen the completion of its 1-2 waves, currently forming wave 3. At the moment, we are considering two possibilities:
The formation of wave 4 < wave 1 < wave 3: In this scenario, we anticipate another impulse to complete wave 1 < wave 3, with the completion of wave 4 and the final wave 5.
The completion of wave 2 < wave 3: In this scenario, we are likely at the beginning of an ABC pattern in phase A. However, this scenario seems rushed.
Taht said, the first scenario appears much more probable. The entry signal is the breaking point of the wedge forming with wave 4 and/or the trendline drawn on the RSI (14) - Daily. The target point should be the high reached with wave 3, approximately $42.5, with a profit of about 12-16%. The stop loss needs to be set at $ 30.45 because it invalidates the impulse pattern.
In the second scenario, which seems premature in my opinion, we could be in a new bull run with the major impulse of wave 1 of a higher cycle wave. The entry signal is the same as the one as described in the previous scenario, but the target differs. In this case, the take profit should be set around $105-95, with a profit of about 175%. In this case the stop loss is set at 25 because it invalidates the wave pattern.
The formation of wave 4 < wave 1 < wave 3: In this scenario, we anticipate another impulse to complete wave 1 < wave 3, with the completion of wave 4 and the final wave 5.
The completion of wave 2 < wave 3: In this scenario, we are likely at the beginning of an ABC pattern in phase A. However, this scenario seems rushed.
Taht said, the first scenario appears much more probable. The entry signal is the breaking point of the wedge forming with wave 4 and/or the trendline drawn on the RSI (14) - Daily. The target point should be the high reached with wave 3, approximately $42.5, with a profit of about 12-16%. The stop loss needs to be set at $ 30.45 because it invalidates the impulse pattern.
In the second scenario, which seems premature in my opinion, we could be in a new bull run with the major impulse of wave 1 of a higher cycle wave. The entry signal is the same as the one as described in the previous scenario, but the target differs. In this case, the take profit should be set around $105-95, with a profit of about 175%. In this case the stop loss is set at 25 because it invalidates the wave pattern.
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