Royal Bank of Canada (RY) is a global financial services company. It provides personal finance, commercial banking, wealth management, and insurance. You can find it listed as “RY” on the NYSE. Forecasts suggest that by April 2025, the stock may rise toward the range of $150.86 to $153.23. Any dips must stay above the low from October 13, 2025, to complete the first phase (1). It is recommended to buy during the second pullback (2), which is expected to occur in 3, 7, or 11 swings at extreme levels. According to Elliott Wave Analysis, the stock has risen since its low in March 2020. This marked the beginning of wave I of phase III, reaching a high of $119.41 in January 2022 and a low of $77.90 in October 2023. The first phase saw several peaks and valleys, with the second phase ending at $83.63. If the stock rallies above this low, targets may range from $150.86 to $156.28 to finish this phase. Currently, the stock appears to be on its way to new highs, having crossed previous levels. We expect two more swings to confirm a rise above $149.44, aiming for the $150.86 to $153.26 range to finalize the first phase. It’s wise to buy during the next pullback (2) at specific swing counts while staying in the upward trend. This information is for educational purposes only and should not be considered investment advice. All trading comes with risks, and potential losses exist. Thorough research and personal financial assessment are crucial before making any trading decisions. From our analysis, we believe Royal Bank of Canada is nearing the end of its upward movement that started after the October 2023 lows. The stock is approaching the target range of $150.86 to $153.23, likely spurred by strong Q3 2025 earnings reported recently. We think this might complete a major impulse wave, which suggests that immediate gains could be limited. We advise against using call options to pursue these last profits, as the risk-to-reward ratio is not favorable. Instead, traders should get ready for a significant pullback, known as wave (2), after this peak is confirmed. Buying put options with expiration in January or February 2026 could be a smart strategy to benefit from the expected decline. Implied volatility for RY options is nearing its 52-week lows, making protective puts relatively inexpensive right now. We saw a similar calm period in late 2021, just before a broad market correction that affected much of 2022. This past pattern indicates that the market may not be fully accounting for the risk of a near-term downturn. This expected drop should be viewed as a buying opportunity, not a long-term bearish sign. The Canadian banking sector remains strong, supported by stable energy prices, with WTI crude averaging over $90 per barrel for much of 2025. Once the market corrects, we’ll consider selling put spreads or buying long-term calls to take advantage of the next major upward wave. Our entire strategy depends on the market structure remaining above the recent swing low from October 13, 2025. A significant drop below that point would invalidate our current bullish outlook and require a complete reevaluation of the trend. Thus, that price level is crucial for managing risk for all future positions.

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