Hamilton's E-Wave Analysis

XOM update

The usual then – Sept. 2, 2014 – and now charts;

This is all pretty basic Elliott Wave stuff. You have a wedge, so it must be the last wave in a sequence, in this case the 5th wave. That 5th wave is virtually always retraced, certainly if it is a wedge. So the next big target is around $55.     So far we moved from the peak at $103 to a of $86.  Without even using a calculator I figure that is about 17%, less than the 20% the talking economic heads regard as a correction.

Now one could argue that this wedge might not be finished. Theoretically, and in this market anything seems possible, the wedge may continue upward and onward for another year or so and make a new high. Relative to wave 3 the proportions of wave 5 would become too large. Furthermore there is substantial overlap, 3 x already which is a bit much even in a wedge. Therefore a very high probability must be attached to this stock going to $55 at the very least.