Royal Bank of Canada (RY), a diversified financial services company, operates worldwide offering personal finance, commercial banking, wealth management, and insurance. It is listed under the ticker “RY” on the NYSE.

A forecast predicts a rally within the April 2025 sequence, expecting an increase towards the $150.86 – $153.23 zone. Dips need to remain above the low from October 13, 2025, to finish (1). It is advised to buy during the (2) pullback, occurring in 3, 7, or 11 swings at extreme levels.

Elliott Wave Analysis reveals a rise from the March 2020 low (II), marking I of (III) at a $119.41 high in January 2022 and II at a $77.90 low in October 2023. Phase I experienced peaks and troughs, while II ended at a low of $83.63. Further rallying above the II low could lead to targets between $150.86 and $156.28 to conclude this phase.

Current standings suggest possible further highs, having surpassed previous levels. Two additional swings are anticipated to validate a rise above $149.44, aiming for the $150.86 – $153.26 area to complete (1). Strategic buying is recommended during the next (2) pullback at specific swing counts while remaining within the uptrend.

This content is for educational purposes only and not investment advice. All trading carries risks and potential losses. Careful research and personal financial consideration are necessary for any trading decision.

Based on the current analysis, we see Royal Bank of Canada in the final stages of an upward push that began after the October 2023 lows. The stock is approaching a target zone of $150.86 to $153.23, likely driven by the strong Q3 2025 earnings reported just a few weeks ago. We believe this completes a major impulse wave, suggesting the immediate upside is now limited.

We would advise against using call options to chase these last gains, as the risk-to-reward is unfavorable. Instead, traders should prepare for a significant pullback, referred to as wave (2), once this peak is confirmed. Buying put options with expiries in January or February 2026 could be a prudent strategy to capitalize on the expected corrective decline.

Implied volatility on RY options has been trending near its 52-week lows, which makes protective puts relatively cheap at the moment. We saw a similar period of complacency in late 2021, just before the market-wide correction that defined much of 2022. This historical pattern suggests the market may be underpricing the risk of a near-term reversal.

This anticipated drop is a buying opportunity, not a long-term bearish signal. The Canadian banking sector remains fundamentally strong, buoyed by stable energy prices, with WTI crude averaging over $90 a barrel for most of 2025. Once the correction finds its footing, we will look to sell put spreads or buy long-dated calls to position for the next major wave higher.

The entire strategy relies on the market structure holding above the recent swing low from October 13, 2025. A decisive break below that level would invalidate the current bullish wave count and force a reassessment of the entire trend. Therefore, that price point serves as our critical line in the sand for managing risk on all future positions.