We are at a low of $65 and called the top quite accurately even if it was the second time. Our target was $50 which equates to the top of wave one in an extended 5-wave sequence. This is only one out of a number of possibilities.
The count as shown (in previous blogs) cannot possible be correct. By the time we get to the ground floor one has to assume that a full correction has taken place. That is not possible if this is a 5-wave down sequence. More likely it is a double zig-zag or a–b-c X a–b-c. The p/e is still above 30 but certainly down from 225 or so. We suspect that at least one more minor wave is needed, as shown in detail below;
This is a log chart, as it must be given the idiotic range. Now we are only $7 away from the $50 mark but a little lower is definitely possible and we will get to the $50 today.
PS. Now that the stock has gone all the way to $45 and that is where the two legs are about equal on this log scale. If you were to start both legs with a 1-2,1-2 setup you could also view this as a simple A-B-C , 5-3-5 with C equal to A, shown below. A 4-5 would still be needed but it does not have to travel that much further. Interestingly, for a brief moment this stock had a larger capitalization than the Royal Bank!
