SHW to 1087 in a 2.618 Wave 3? What??

Nobody became a developer to write documentation. But the docs still need to get written — PRDs, README updates, architecture decisions, onboarding guides.

Wispr Flow lets you talk through it instead. Speak naturally about what the code does, how it works, and why you built it that way. Flow formats everything into clean, professional text you can paste into Notion, Confluence, or GitHub.

Used by engineering teams at OpenAI, Vercel, and Clay. 89% of messages sent with zero edits. Works system-wide on Mac, Windows, and iPhone.

Try Wispr Flow free

SHW (Sherwin-Williams) Elliott Wave Structure: Positioning for a Potential Wave 3 Expansion

Sherwin-Williams has developed one of the cleaner long-term Elliott Wave structures in the industrial and materials space, with price action unfolding in a highly symmetrical impulsive sequence that now appears to be transitioning into a powerful third wave phase.

The primary impulsive structure began with a significant advance from approximately 15 to 354, marking a full-blown Wave 1 expansion. This move represents the initial discovery phase of the long-term trend, where institutional positioning typically begins to accumulate before broader market recognition.

A move of this magnitude is important in Elliott Wave terms because it sets the full structural range for future Fibonacci projections. In SHW’s case, the Wave 1 extension from 15 → 354 created a high-volatility baseline that now defines the roadmap for both Wave 3 and Wave 5 targets.

Following that aggressive expansion, SHW entered a corrective phase labeled Wave 2, retracing from 354 down to 197. This decline represents a substantial correction in percentage terms, but structurally it remains healthy within Elliott Wave guidelines.

Wave 2 corrections often shake out late participants and reset positioning without invalidating the larger bullish cycle. The depth of this retracement—approaching the prior structural base—suggests a strong liquidation of excess positioning, which typically strengthens the next impulsive phase.

Importantly, the retracement did not break the original structural integrity of the Wave 1 base, preserving the bullish cycle framework.

SHW has now entered a Wave 3 development phase, which is historically the most powerful and extended portion of any Elliott Wave sequence. Wave 3 is typically characterized by:

In SHW’s case, the first key technical trigger is a break above 375 or alternatively a move into the 0.786 retracement level of the Wave 2 decline. Both levels act as confirmation that the correction has fully resolved and the next impulsive leg is underway.

Once that breakout condition is met, the structure opens into full Fibonacci expansion territory.

Is your growth in-line with your peers in B2B SaaS & AI? 

Benchmark yourself against actual billings data for Maxio’s 2000+ global customers. 

Key takeaways from the report: 

Download the Report

Using the Wave 1 range (15 to 354) as the projection anchor, Fibonacci extension targets for Wave 3 become highly meaningful.

The primary projected levels are:

These levels are derived from standard Elliott Wave Fibonacci relationships where Wave 3 often equals or exceeds 1.618 times the magnitude of Wave 1, especially in strong secular trends.

A move toward 747 would represent a textbook Wave 3 completion zone under normal extension behavior. However, in stronger macro-driven cycles—particularly those fueled by sector-wide expansion or inflationary pricing environments—Wave 3 frequently extends into 2.618 territory, which would place SHW in the region of ~1087.

This is not speculative randomness; it reflects historical behavior in strong impulsive equities where earnings expansion, pricing power, and institutional allocation converge.

The most important feature of SHW’s current structure is not just the upside targets—it is the clean separation between impulse and correction.

This is the ideal Elliott Wave sequence traders look for: a strong impulsive first leg, a controlled retracement, and a breakout into expansion territory.

The fact that SHW has held its structural integrity through the correction suggests that larger institutional participants did not exit the trend but instead likely repositioned.

Every day, 4.5 million readers turn to 1440 for their factual news fix. We sift through 100+ sources to bring you a complete summary of politics, global events, business, and culture — all in a brief 5-minute email. No spin. No slant. Just clarity.

Join for free today!

To validate continuation into higher Fibonacci targets, price behavior must confirm:

If these conditions align, SHW transitions from early Wave 3 development into full momentum acceleration.

SHW is currently in a technically significant position where a completed Wave 2 correction is giving way to a potentially powerful Wave 3 expansion.

With Fibonacci projections targeting ~747 (1.618) and ~1087 (2.618), the structure represents a high-range asymmetry setup—where downside is limited by completed correction structure, while upside remains mathematically expansive if momentum confirms.

The key inflection remains simple: a sustained breakout above 375 confirms that SHW is no longer consolidating, but accelerating into its next major impulsive phase.