PPL Corp Elliott Wave Analysis: Bull & Bear Options

Two Potential Scenarios for PPL

BULLISH OPTION

Since the 1974 low, price has been advancing in a leading diagonal, forming a higher-degree wave (1). The projected target for the 5th wave is the yellow 1.618 extension at $96.16. If this scenario unfolds, PPL will enter a multi-year bear market as wave (2) undergoes a corrective retracement. Following this, price is expected to resume its uptrend in an additional five-wave sequence, adhering to the principle: “What starts in five waves, ends in five waves.”

BEST-CASE BEARISH OPTION:

From the 1974 low, price has moved upward in a blue WXY correction, completing the higher-degree (A) wave, followed by a three-wave retracement in yellow, forming the higher-degree blue W wave. In the best-case bearish scenario, price advances for the higher-degree yellow C wave, reaching the yellow 1.382 extension within the Expanded B Pocket. This move would establish the higher-degree blue X wave before a subsequent capitulation into the higher-degree blue Y wave, completing the higher-degree (B) wave.

From this point, PPL is expected to resume an upward trajectory, unfolding in a five-wave sequence for the higher-degree (C) wave. The maximum price target for this structure is the yellow 2.236 extension at $129.28.

FINAL THOUGHTS

In the short term, price is expected to continue to the upside, whether it reaches the 1.382 extension of the Expanded B Pocket or the 1.618 extension 5th wave target of the potential leading diagonal for the higher-degree wave (1). Regardless of which scenario plays out, the current market structure leans bullish.