EW provides you with a green, red or amber light. They do not occur in the same proportions. Most often the light is amber meaning that there is no clear-cut predictive value flowing from the EW analysis. That is not a problem since you simple move on to a stock that does present a clear picture, but that approach does not work if someone asks you about a specific stock! That is the case with EXC, this is a utility, mostly electric but also in the gas distribution business. It operates in the Mid-West (HQ in Chicago) and is the largest operator of nuclear power stations. So right of the bat, utility=good and nuclear=bad, the yin and yang of investing. So going straight to the charts this is what we have;
The charts are the same stock over the same time period. The one on the left is arithmetic and the one on the right logarithmic. Arithmetic charts have a tendency to exaggerate the rise of a stock as it follows a parabolic line. The log chart, despite being less commonly used, actually gives a much better proportionate presentation of what is going on. With only the chart on the left, the prediction that this stock may drop to $20 seems preposterous. On the right chart it actually seems to fit nicely. Now the short-term chart;
This looks a bit like MSFT, Microsoft. My best guess at this point is that we are in a triangle wave B, the A was the big drop from $90 to $34. The B will rotate a little longer around $41 and then wave C will drop to $20 (or lower). One could buy the stock here waiting for the e wave to form. You could get lucky and the stock just keeps going, negating the bearish outlook. The only certain thing is that a stop loss should be used at $38.
By the way, regression to the mean alone would bring this stock close o the $20 level.