Adidas is a German multinational corporation that designs and manufactures footwear, clothing and accessories. Founded in 1934 by Adolf Dassler and based in Herzogenaurach, Germany, the company is the largest sportswear manufacturer in Europe. Adidas is part of the DAX40 and SX5E indices. Since all-time lows, Adidas has shown strong bullish behavior. In particular, since the lows of 2008, it has gained more than 10 times in value. In the original January 2021 article, we called for a new upward cycle. We were right, Adidas set a new all-time high at 336.25. In this blog, we provide an update.
Monthly Elliott Wave Analysis from Adidas 12/28/2021
The monthly chart below shows the Adidas $ ADS stock traded on XETRA. From all-time lows, the stock price has cycled higher in the blue wave (I) of the super-cycle degree towards the January 2008 highs at 51.63. From there, a downward correction in blue wave (II) retraced some of the upside. He printed a background on November 2008 at 21.22. Since the November 2008 lows, a wave cycle (III) has extended towards the August 2019 highs at 296.75. Thus, the extension beyond 4.236 qualifies the cycle as 3rd wave. Since the August 2019 highs, a downward correction in Wave (IV) has unfolded as a flat structure widened towards the March 2020 lows at 162.20.
Starting from the lows of March 2020, a new wave cycle (V) is underway and has reached new all-time highs. The minimum target above 328.80 has already been reached. However, $ ADS might only have completed wave I of (V). Therefore, investors can buy Adidas during a pullback expecting more upside beyond the 328.80 target.
Adidas Elliott Daily Wave Analysis 12.28.2021
The daily chart below shows in more detail the upward advance of red wave I of blue wave (V) and the retreat of wave II. First, from the March 2020 lows at 162.20, a higher cycle in Red Wave I unfolded as an impetus and printed its August 2021 high at 336.25. Here the wave ((1)) shows the extension. Currently a downward correction in red wave II is underway and should find support in 3, 7 or 11 swings for further upside in wave III of (V). Right now, while $ ADS is trading below 300.25, prices may fall into the 220.76-171.54 area. There, buyers can enter the market for a rally to new all-time highs.