The recent gyrations over the last few weeks, appear to be taking the shape of a possible bearish rising wedge, Elliott Wave calls this pattern an ending diagonal.
Essentially it’s a terminal pattern. A strong move below $83.60 is needed to support a reversal, as it may still chop and grind higher but remains in the overall wedge shape. An impulsive move under $83.60, then $80.00 would be a strong sign to argue that its likely completed an impulse wave (5 wave advance) from the Nov 2018 low and potentially a much larger impulse wave from the 2016 lows, which would be significant as it can further support a large retracement towards $45.00 – 40.00.
I would watch the price action over the following days if you own this stock, as the rising wedge is a basic reversal pattern that is supportive of a pending reversal.
Do you have a stock that you want evaluating? Purchase a consultation call and get an independent review through the lens of Elliott Wave. With the US stock markets vibrating around the previous all-time highs, it may be prudent to think about protecting any gains you have.
Click here to purchase a consultation call CLICK HERE
Click here to purchase a Elliott Wave report CLICK HERE
Note: If you are a member, you can email me or send a tweet for an update if you are thinking about trading this stock.