In this Elliott Wave update, we take a look at the long-term structure in Intrepid Potash, Inc. ($IPI). The stock appears to be starting a new bullish cycle, and the price action since June 2023 suggests a nesting structure is developing. As a result, the current pullback is approaching a key blue box area, where buyers can return and where the next leg higher may begin. If that setup holds, $IPI could see a strong acceleration phase over the next 3 years.
$IPI Has Been Nesting Since June 2023
Looking at the weekly chart, $IPI appears to have built an important base following the larger correction into the 2023 low. From there, the stock started to turn higher and began to form a bullish structure with overlapping but constructive price action.
More importantly, the move from June 2023 suggests that the market has been nesting, which in Elliott Wave terms means the stock may be building the foundation for a much larger upside move. Nesting structures often appear in the early stages of a new bullish cycle, especially when wave (1) and wave (2) of a higher degree start taking shape.
Therefore, the current setup points to the possibility that $IPI is not just bouncing, but rather preparing for a broader bullish expansion.
New Bullish Cycle May Be Starting
The larger picture suggests that $IPI may have already completed a major corrective phase and is now transitioning into a new cycle to the upside. The rally into the 2026 high supports that view, while the current pullback appears corrective rather than impulsive.
This is important because a corrective pullback inside a developing bullish structure often creates the next opportunity for buyers to enter before the trend extends higher again. In other words, the current dip may be part of a larger setup rather than a sign of renewed long-term weakness.
Blue Box Area Is the Key Support Zone
Most importantly, $IPI is approaching the blue box area between 32.10 and 22.23. This zone marks the next high-frequency support region, where wave 2 can complete and where buyers may step in again.
Typically, blue box areas represent extreme zones in corrective pullbacks. In this case, if price reaches that support region, the stock can attract fresh buying interest and begin the next advancing leg in the new bullish cycle.
For that reason, we do not like selling into the blue box. Instead, the preferred view is to watch that area closely for signs that the correction has ended and the next bullish phase has started.
Why the Next 3 Years Could Be Important
If $IPI completes the current pullback in the blue box and resumes higher, the stock could enter a much stronger upside phase over the coming years. That is because a completed nesting structure often leads to acceleration once the market breaks out of the corrective base.
Accordingly, the next 3 years could become a very important period for $IPI if the bullish count continues to develop as expected. A sustained move higher from the blue box would strengthen the case that a larger degree advance is unfolding.
Near-Term Outlook for $IPI
In the near term, the focus remains on the pullback into 32.10–22.23. As long as the decline stays corrective, that region remains the key area to watch for a bullish reaction.
Meanwhile, the larger bullish structure remains valid above the long-term 6.00 invalidation level. Therefore, the broader outlook continues to favor higher prices over time as long as the stock stays above that support.
Technical Summary
To summarize, $IPI appears to be starting a new bullish cycle and has been nesting since June 2023. The stock is now approaching the blue box area at 32.10–22.23, where buyers may appear and set the stage for the next advance.
If the stock reacts higher from that zone, it could begin a stronger acceleration phase, and the next 3 years may become very important in the development of the new bullish cycle.
