Elliott Wave Analysis of Amtek Engineering (M1P) – 5 June 2012
Amtek Engineering is listed on the Singapore Stock Exchange. It is a well established company providing end-to-end design and manufacturing solutions in the area of precision components and casings.
In this Elliott Wave analysis, we start at the peak of 1.40 hit on 14 Jan 2011. Thereafter, the stock went down hill in what looks like a typical five wave structure which is confirmed by the MACD. The low of 0.485 was hit in end Nov 2011. Following this, a recovery took place and it appears that it is in the middle of the recovery phase. I believe that the recovery is in a zig-zag and thus far, the wave a and b of the zig-zag appears to be completed. The next likely move is the wave c with a target of the 0.9.
The below chart is the detailed chart of the recovery phase. I have labelled the recovery as a zig-zag with Minute waves [a] and [b] completed and Minute [c] about to start. One of the reasons for the confidence in this count is that the Minute [b] ended in an ending diagonal (triangle) pattern. This pattern indicates an exhaustion and a likely move in the opposite direction. The trading plan for this stock is to go long with a successful break out of the ending diagonal to the top side. Based on this chart, this would mean that a close above 0.635. The target of 0.9 was is where wave [c] = [a]. There are also a few resistance at this level and this can be seen the longer term chart above. There is a divergence on the daily MACD compared to the price which is another indication of a likely bullish move. The stop loss can be set at 0.615 which is the recent low.
The alternate bearish view will be triggered if the support line is broken to the bottom side. Also note that although the arrow is drawn as a straight line, the actual move would likely take place in a higher high, higher low formation.