Since the 82.49 high a zig-zag correction is developing. This correction is not only correcting the rally from 43.04, but the entire rally from the 7.06 low in November 2008. This will call for a prolonged correction both time and price wise. However, for now we have reached the 38.2% corrective target of the rally from 43.04 to 82.49, but after a minor rally towards the 73.31 - 74.54 area I will be looking for renewed downside pressure towards at least 63.73 and likely even lower towards 57.08.
Hi EWS,
ReplyDeleteDo you think SPWR has bottomed early? It wasn't even a 38% retracement, but after this morning it looks like it could be off the the races for a new high.
Hi Todd,
DeleteThe decline from the 37.11 is clearly in three waves and as both wave a and c is in five waves it's a zig-zag correction.
As you said it didn't even reach the 38.2% corrective target of the rally from 3.71 to 37.11 (note that the top came in a factor 10 the poin of origine). As the decline from 37.11 only is in three waves it can't be the C wave I was looking for. Therefore I think the rally from 25.38 is an X-wave and more downside will follow soon. Longer term I will still be lookig or a decline to the 50% corrective target at 20.36 as the idea target. This target also marks the bottom of wave 4 of one lessor degree.
I hope this helps.
Kind regards
EWS
In your previous Starbucks posts you had linked the share price with the coffee price. Noted an interview with starbucks CEO who claimed that the coffee price was a surprisingly small factor in Starbucks costs and that energy and juice prices were bigger factors. Just sayin'. The charts don't lie.
ReplyDeleteHi Alastair,
DeleteThank you for the info. I'm not that surprised that energy might be a bigger factor that the coffee price, but the juice factor is a surprice to me.
Kind regards
EWS