Jollibee Foods Corporation (JFC) Completes Wave A of a ZIGZAG or 5:3:5 Correction

Jollibee Foods Corporation (JFC) is a Philippines-based a company engaged in the development, operation and franchising of quick-service restaurants (QSR) under the trade name Jollibee. The Company has a number of subsidiaries, which include FRESH N' FAMOUS FOODS, INC., which develops, operates and franchises quick-service restaurants under the trade names Chow King and Greenwich; RED RIBBON BAKESHOP, INC. (through RRB HOLDINGS, INC.), which develops, operates and franchises restaurants under the Red Ribbon trade name; MANG INASAL PHILS., INC., which develops, operates and franchises restaurants under the Mang Inasal trade name, and PERF RESTAURANTS INC., which franchises restaurants under the Burger King trademark in the Philippines. It also has subsidiaries and affiliates, which develop and operate it's international brands, Yonghe King, Hong Zhuang Yuan, San Pin Wang, brands under the SuperFoods Group (including Highlands Coffee and Pho 24), Sma and Dunkin' Donuts. Recently JFC acquired Coffee Bean & Tea Leaf (CBTL) for $350M.

JFC just completed Wave A at 217.20 and is about to make Wave B. This means it is about to make a 3-wave bounce (Wave B) and will most likely make a lower low in its Wave C. It is following a Zigzag structure which is 5:3:5. The chart below shows how a Zigzag looks like in the Elliott Wave Theory.

The low at 217.20 on August 13, 2019, ended Wave A of the Corrective ABC of Elliott Wave. JFC may go up and make Wave B. Wave B may rise up to 50% Fibonacci Retracement of Wave A or 270 – 280. Base on Elliott Wave the Fibonacci Ratio of Wave B in Relationship with Wave A is Wave B = 50%, 61.8%, 78.6%, 88.6%.This suggests a Range Trade for JFC with downward Bias.

After Wave B, the last corrective Wave C may be unfolded and forecasted between 200 to 160 levels. The Fibonacci Ratio rules and guidelines for WAVE C is Wave C = 61.8%, 100.0 or 123.6% of Wave A.

Just to put things in a better perspective, JFC completed a multi-year 5-wave structure known in Elliott Wave as impulse waves. It will take at least the same number of years at a minimum to complete its ABC corrective phase. The impulse wave started in the first quarter of 2017 and end in the first quarter of 2019. Then there’s a probability that the Corrective ABC will end on the last quarter of 2020. I hope that idea is clear enough for everyone to understand.