City Union Bank – Tight Stop, Wave 3 Setup in Play

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.

Elliott Wave Setup
City Union Bank has completed a W–X–Y double zigzag correction into 193.50, with Wave Y equaling Wave W — a classic case of corrective symmetry. From that low:

• Wave 1 unfolded as a leading diagonal.
  
• Wave 2 corrected as a running flat, showing underlying strength.
  
• Price is now attempting a breakout, suggesting Wave 3 is underway.
  

The stop-loss / invalidation is clear: 205.41, the Wave 2 low. This creates a textbook tight-risk entry point.

Why Wave 3 Matters
Wave 3 in Elliott theory is often the strongest, most extended move. Early signs support this potential:

• RSI is holding above mid-50s without new lows → momentum remains bullish.
  
• Volume has dried up during correction but is starting to expand with breakout attempts.
  
• Target zone: 224.6 → 236.5 (1.0–1.618 Fib extensions of Wave 1).
  

Immediate challenge lies at the 212–214 resistance cluster. A clean break above confirms acceleration.

Trading the Setup
Tight stop: below 205.41.
Potential reward: 20–25 points higher.
Risk/Reward: exactly what traders look for in a Wave 3 entry.

For readers, the bigger lesson is how Elliott Wave provides natural stop placement. By respecting Wave 2 lows, traders can define risk precisely and be positioned for the explosive Wave 3 rally.

The Takeaway
This is not just a bullish call on City Union Bank. It’s a case study in EW discipline:

• Use Wave 2 lows as invalidation.
  
• Look for Wave 3 to deliver the reward.
  
• Enter with conviction only when structure + momentum align.