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 last 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. Here, we provide an update.
MTU Monthly Elliott Wave Analysis 10.10.2022
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 observe a nest forming. First, wave I of (III) has ended in June 2021 at 224.90. From there, a double correction in wave II is currently in progress and should find support above 97.76 lows. Then acceleration higher in wave III of (III) should take place.
MTU Daily Elliott Wave Analysis 10.10.2022
The daily chart below shows in more detail the double three correction from the June 2021 highs. Firstly, three swings 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. It has reached already the minimum target of 157.50 being 100% extension of the wave ((W)). Now, using the internal structure of the wave ((Y)), blue wave (Y) can reach 100% extension of the blue wave (W) within black ((Y)). Hereby, one can keep an eye on the 137.60 level.
Investors and traders can be looking to buy $MTX from 157.50-118.23 area for an acceleration higher in red wave III of blue wave (III) or for a bounce in 3 waves as minimum.