DG Developing Impulse [LONG]

103
1. The Big Picture: Wave Structure
Down-trend Completion

A five-wave decline (labelled “5” at the bottom, ≈ $69.56) finishes in early March 2025.

Complex Correction (W-X-Y)

From December 2024 into March 2025 the market chops out a W-X-Y sideways correction between roughly $70–83.

New Uptrend (Impulse)

Wave 1 up to $84.53

Wave 2 pullback into the 0.5–0.707 zone ($77.05 | 75.28 | 73.95)

Wave 3 powerful thrust into the high-90s

Wave 4 shallow retrace into the mid-$80s

Wave 5 of 3 (current leg) pushing into the low-$100s

2. Current Position: Subwave 5 of Wave 3
Price now: $101.39

We appear to be in the 5th subwave of the larger Wave 3.

That means one more small thrust higher is likely before Wave 3 completes.

3. Target Zone for Wave 3
The 1.618 × Wave 1→3 extension sits at 104.18.

The grey box (~$103–$106) marks our Wave 3 target.

Traders often look to take partial profits as price enters this zone.

4. Key Support / Invalidation Levels
Short-term bump: 23.6% of Wave 4→5, at ≈ $100.00

Primary support: old Wave 4 high / 38.2% retracement, at ≈ $97.50

Invalidation: a clear break below $97.50 would argue that the Wave 5 advance is failing (and could reopen a deeper correction).

5. What Happens After Wave 3?
Once Wave 3 tops out (~104–106), expect a Wave 4 correction of that entire impulse.

Typical Wave 4 depth is 38.2% of Wave 3: that would put a pullback into roughly $90–92.

After Wave 4 completes, a final Wave 5 higher would target new all-time highs.

6. Trading Plan Ideas
Long exposure: add on small dips down to $100–$100.50, keep stops under $97.50.

Partial profit: begin scaling out as price enters $103–$106.

Watch for reversal signals (e.g. bearish divergence, high-volume down days) once inside the grey box—this will mark the end of the impulsive Wave 3.

Bottom line: DG is in the late stages of a textbook Elliott-Wave 3, with one last run higher into the $104–$106 zone likely, then a healthy multi-week pullback (Wave 4) should follow. Keep your stops under $97.50 and look to lock in profits as you approach that extension target.

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