RJET filed for creditor protection, Chapter 11, yesterday. This begs the question if this could have been foreseen by EW practitioners. The answer, of course, is no, it could not have been foreseen. But you would have known that a basic corrective pattern is an A-B-C down. It can be a flat or a zig-zag. This is not a flat as the stock never climbed back to the $24 level, not even close. It is therefore a zig-zag which has the basic characteristics of a 5-3-5 move. The rule to remember is that 5-wave sequences never stand alone, there is always either an A-B in front of it or a B-C behind it, that is another 5-wave sequence. You also know that a new low, below the low if the first 5-wave sequence should be anticipated. In this case that is a low below $2.61.
Also often you retrace back to the highest point in the triangle or a Fibo 61.8%. Here we did both. So there is no excuse if you are still holding this stock.
There are other possible counts for this stock but they all have this same 5-3-5 pattern.