REH Charts

I've got a few here. I'll start with the seemingly complex one and strip it back. I would also like the opinion of an Elliot Wave expert if there is one watching as it's a new tool in my kit and I know I've made a cardinal sin in drawing this up because Wave 3 is the shortest impulse wave on the grander cycle.

I think REH is at the end part of a large cycle and about to enter the consolidation period. The yellow circle at the end is roughly where i think the final impulse wave will come to a halt. Considering the macro economic climate i think that it lines up. I dont think the Aussie housing market has much left in in and REH is driven by the construction boom that began in 2013, which, if you look at the chart, was the beginning on this phase of REHs impulse cycle.


My final target for this phase to end is somewhere between the end of that trend line I have drawn and also the impulse wave end. At which point, I can see this turning into a consolidation wave trend, which means we should expect a retrace to $8-$9. I actually think that is a fair value to retrace to. I have an overall view that REH, being the largest supplier of plumbing, and now Aircon equipment in Australia they are a very good thermometer of the Aussie housing market, and I do believe that we are well due for a correction on that.

So this is the final leg of said chart. We have a nice little pennant that has formed. I'm watching for a break above 10.80 and I'm going in for the final run up to ~$12 and then battening down the hatches.

I have been watching REH since they were about $8 but back in those days I didn't have a clue about trading. If I had gotten on board then that would have been a nice ride upwards. In any case, i think REH has got about 1 or 2 years left in it. Just like the aussie housing market. I think I might go and compare this to the big banks and see how the two line up.