Hamilton's E-Wave Analysis

IFF, International Flavors and Fragrances.

This is a 5bln cap. company that is, as the name suggests, involved in specialty chemicals. It earns a dividend income of about 1.8% and presently trades at a /e of 18. Here is the chart;

Everything about this chart points to a large “flat”, that is an A-B-C where the legs are about the same, here successively bigger, without the stock making any headway.  The typical subdivisions are a-b-c,a-b-c,1-2-3-4-5. We just started 1 of the C wave. This scenario would ultimately result in a loss of about 60%.

There is an outside, very improbable, bullish alternative (in red) that views the recently completed up-leg as wave 5. Even in that bullish interpretation a loss of 40% is still a logical outcome. Both can be avoided by selling now.