BCE update

In a previous blog, back in March, we opined that we very much doubted that the stock would trade above $48.50. It did not. Here is the detailed picture;

bce aug 16 2013

From the peak of $48.27 it traced out an initial 5-wave sequence down (about 16%). It then did an A up right to the apex of a 4th wave triangle and then collapsed again, almost to where it started the rebound. That is clearly a B-wave. Now the C should take the stock to about $45, the highest level in that triangle ( and possible a little higher). There is an alternative, the B could become a triangle which really doesn’ change anything except the timing. As it happens $45 is also a clean 62% Fibo retracement. So a buy here if you play for small gains and then a sell again as you get closer to $45.