Sometimes EW simple doesn’t cut it. Straight lines become more reliable. There is a very good chance this stock will not cross the line in which case it will easily rebound half the drop from $40, that is $7, give or take (about 25% on $26). Both the RSI and MACD seem to support this notion. In case it does break put in a stop at $25 or a wee bit lower. It is a risk/reward of 1 to 7, quite acceptable. And , on top of that China is doing a little more easing today and they could use a few cleaner burning diesel engines.