Covestro AG (formerly, Bayer MaterialScience) is a German company which produces a variety of polycarbonate and polyurethane based raw materials. The products include coatings and adhesives, polyurethanes for thermal insulation and electrical housings, polycarbonate based highly impact-resistant plastics (Makrolon) and more. Formed in 2015 as a spin off from Bayer, Covestro is headquartered in Leverkusen, Germany. As a part of DAX30 index, one can trade it under the ticker $1COV at Frankfurt Stock Exchange.
Covestro Elliott Wave Analysis 06.20.2021
The weekly chart below shows the Covestro stock $1COV traded at XETRA. From the IPO lows in October 2015, the stock price has developed a cycle higher in blue wave (I) of super cycle degree towards the all-time highs on January 2018 at 95.78. From the highs, a correction lower in blue wave (II) has unfolded as an Elliott wave double three pattern. It has printed an important bottom on March 2010 at 23.54.
From March 2010 lows, a new cycle in wave (III) has already started and should extend towards 95.78 highs and even higher.
Covestro Daily Elliott Wave Analysis 06.20.2021
The daily chart below shows in more detail the first stages of the advance higher in blue wave (III). From the March 2020 lows, red wave I has developed an impulse higher towards March 2021 highs at 63.24. Within wave I, there are 5 black subwaves ((1))-((5)). Hereby, the wave ((5)) shows an extension.
From the March 2021 highs, a correction lower in wave II has started. As a matter of fact, it should find support above 23.54 lows in 3, 7 or 11 swings. Currently, while below 59.56, a double three correction may reach into 48.99-42.45 blue box area. From there, a rally to new highs or a bounce in 3 waves as minimum should take place. Based on the correlation with some world indices, which might be still extending to the all-time highs before correcting lower the March 2020 cycle, Covestro is expected to bounce and do a larger double three correction as proposed in the daily view.
Investors and traders can be looking to buy $1COV in a pullback against 23.54 lows in 3, 7 or 11 swings targeting 119.48-178.73 area in a long run.
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