Wave (II) looks complete, right side remains bullish and wave (III) targets higher prices ahead
Builders FirstSource (NYSE: BLDR ) continues to show strong upside growth view based on Elliott Wave Theory. The monthly chart shows an impressive impulsive advance to the top of wave (I). After this strong rally, stocks entered a larger correction phase. This correction created a WXY structure and likely completed wave (II) inside the blue box support area.
Wave (II) correction likely complete – bullish right side remains intact
During the repair, the price tested the key Fibonacci areas near 118.91 and deeper levels of 66.76. This zone formed a major support region and helped stabilize the market. The Right Side brand still favors a bullish direction. The invalidation level remains well below, so the bullish structure remains valid as long as the price holds above the support.
After stabilizing inside the blue box, BLDR began to rotate higher. This move suggests that wave ((1)) of a new bullish cycle may have already begun. There may still be a small retracement of the wave ((2)), but as long as it remains corrective, stocks should continue higher again.
Upside targets and long-term bullish expectations
With wave (II) potentially completed, BLDR is positioned to initiate a strong impulsive advance in wave (III). Historically, third waves tend to be the strongest and longest in Elliott Wave patterns, often surpassing previous highs and setting new records. Therefore, the next bullish phase is expected to challenge recent highs and then move towards new all-time highs, supported by strong momentum and a positive cycle.
We do not recommend selling stock as the long-term trend remains bullish. As long as the structure holds above the depreciation level and the price continues to respect the ascending sequence, buyers are expected to remain in control.
Summary
In summary, Builders FirstSource maintains a strong bullish Elliott Wave structure, indicating that wave (II) is likely in place and the market is preparing for a strong advance in wave (III). Investors and traders following long-term structural trends may continue to favor growth and expect new all-time highs in the coming cycles.
