Siemens SE is a German multinational conglomerate company and by revenue the largest industrial manufacturing enterprise in Europe. Company’s principal business divisions are Industry, Energy, Healthcare, Infrastructure & Cities. Founded in 1847 and headquartered in Munich, Germany, the company employs approx. 385’ooo people worldwide. Siemens is a part of both DAX40 and of SX5E indices. One can note that the economic success of the company is truly accompanied by a strong performance of the Siemens stock.
In the initial article from February 2021, we have forecasted a rally to the new highs. We were right. The new all-time highs have been printed in January 2022 at 157.96. Now, we see the stock price pulling back from the all-time highs. In the current blog, we analyze the structure of the price movement and provide the new upside targets.
The monthly chart below shows the Siemens stock $SIE traded at XETRA. From the all-time lows, the stock price has developed a cycle higher in black wave ((I)) of grand super cycle degree towards May 2001 highs at 89.75. From there, a correction lower in black wave ((II)) has unfolded as an Elliott wave expanded flat pattern. It has printed an important bottom on October 2008 at 32.07. From October 2008 lows, a new cycle in wave ((III)) has been already confirmed by breaking above 89.75 highs.
A closer look on the price action from 2008 lows unveals the development of another nest being blue wave (I) of black wave ((III)). The 2008 cycle has reached towards 133.50 on May 2017. From there, a correction has unfolded as a zigzag structure in wave (II). The consolidation has ended in March 2020 at 58.77. While above there, Siemens is already within blue wave (III). Break above the 133.50 high has confirmed that. A target for wave (III) will be 159.95-222.60 area and beyond.
The daily chart below shows in more detail the first stages of the advance higher in wave (III). From the March 2020 lows at 58.77, we see the cycle in wave I of blue wave (III) and a pullback in wave II. First, the advance in red wave I is a classical umpulsive structure. Hereby, black waves ((1)), ((3)) and ((5)) of red wave I provide a clear subdivision into 5 waves of lesser degree. The cycle has ended by printing the all-time highs at 157.96 in January 2022. Then, from the highs, a pullback in wave II shows a zigzag lower. It is the preferred view, that it has ended in March 2022 at 111.38 lows. While above there, a new cycle in wave III of (III) might be in progress.
Notwithstanding the sanctions war in the world, the manufacturing giant Siemens should see the acceleration higher soon. The target for red wave III will be 205.06-266.33 area and even higher.