Early Signs of a New Elliott Wave Cycle in a Mid-Cap Infrastructure Play 📈

1. Elliott Wave Structure – Beginning of a New Cycle After a strong multi-year rally, the stock entered a prolonged corrective phase, forming a deep retracement and price consolidation. If this interpretation plays out: Wave (1): Initial breakout rally Wave (2): Healthy pullback Wave (3): Strong momentum expansion Wave (4): Consolidation phase Wave (5): Final bullish leg of the cycle Wave (3) is typically the largest and strongest move, often driven by institutional participation. 2. AVWAP Support from Long-Term Base The lower region where price recently bounced aligns with a long-term Anchored VWAP (AVWAP) support zone, suggesting that institutional participants may be accumulating positions near these levels. Holding above this zone is crucial for sustaining the bullish recovery. 3. Moving Average Convergence The medium-term and long-term moving averages are beginning to converge near the current price zone. Such convergence phases often occur before large directional moves, as the market builds a new equilibrium before deciding the next trend. 4. Structural Recovery The recent bullish candle on the monthly timeframe suggests strong demand emerging after a prolonged downtrend. If the stock continues forming higher highs and higher lows, it could confirm the beginning of a fresh long-term uptrend. Potential Scenario If the early Wave (1) impulse gains traction and the stock sustains above the recent base zone, the chart structure suggests the potential development of a multi-wave bullish expansion over the coming cycles. Key Insight: When Elliott Wave cycle reset, momentum stabilization, AVWAP support, and structural recovery align on higher timeframes, it often marks the beginning of a new long-term trend. 🚀