MTU Aero Engines AG is a German aircraft engine manufacturer. It develops, manufactures and provides service support for civil and military aircraft engines. Founded in 1934 and headquartered in Munich, Germany, it can be traded under the ticker $MTX at XETRA in Frankfurt. MTU is a part of DAX40 index. In the initial article back in April 2021, we have forecasted a new cycle higher. The following article from December 2021 has called a nest in place and an acceleration higher to happen. In fact, we saw a bounce from 166.25-140.96 area towards 221.10 highs. However, the stock price of MTU Aero Engines has decided to perform a double correction. In the last article from October 2022, we have presented 157.50-118.23 buying area where a rally to the new highs or a reaction in 3 swings as minimum should take place. As a matter of fact, the rally has broken June 2021 highs opening up a bullish sequence. In current update, we discuss next buying opportunities and provide targets.
MTU Monthly Elliott Wave Analysis 10.09.2022
The monthly chart below shows the MTU stock $MTX traded at XETRA in Frankfurt. From the all-time lows, the stock price has developed a cycle higher in blue wave (I) of a super cycle degree. MTU has printed the all-time highs in January 2020 at 289.30. Without any doubt, the advance is a textbook quality impulsive move up in 5 waves. From January 2020 highs, a sharp straightdown correction in the blue wave (II) has retraced 2/3 of the price. An important bottom has been printed in March 2020 at 97.76 low. From there, a new cycle in wave (III) might have started. Investors can be expecting MTU stock to reach into the new all-time highs. The target will be 388-568 area.
In shorter cycles, from March 2020, one can see an initial nest completely formed. First, wave I of (III) has ended in June 2021 at 224.90. From there, a double correction in wave II has found bottom in September 2022 at 149.20. From there, wave III higher is in progress. Break of June 2021 highs has confirmed that. The target for wave III will be 275-354 area and even higher.
MTU Daily Elliott Wave Analysis 10.09.2022
The daily chart below shows in more detail the double three correction from the June 2021 highs and the rally from 157.50-118.23 blue box area. Firstly, three swings (not shown on chart) of black wave ((W)) have reached into 166.25-140.96 area. There, a reaction higher took place. However, it has not broken to the new highs above June 2021. In fact, a connector in wave ((X)) has printed a top in February 2022 at 221.10 highs. Then, black wave ((Y)) has been confirmed by breaking the November 2021 lows. Hereby, it opened a bearish sequence. From February 2022 highs, clear 3 swings lower have reached into 157.50-118.23 blue box area. There, a reaction took place. Wave II has ended as a 7 swings structure in September 2022 at 149.20 lows. Break above June 2021 has confirmed that.
From September 2022, one can see a textbook impulse in black wave ((1)). It misses still 1-2 swings within wave (5) of ((1)). Once finished, expect pullback to find support in 3, 7, 11 swings above 149.20 lows. Investors and traders can be looking to join the rally while buying $MTX in a pullback as wave ((2)) against 149.20 low for an acceleration higher in black wave ((3)) of red wave III of blue wave (III).
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