The usual then, Jan. 20, 2017, and now charts;
It has taken all of this year for the stock to reach the upper trend line, but now it is there. A throw-over is always a possibility but apart from that the stock – according to EW principals – should be ready to go down. Since wave 4 retraced about 55% of the value, the coming drop should normally exceed that percentage. In fact, in the worst case, a drop to the 4th wave of previous degree should be anticipated. That is in the neighbourhood of $75 or $40 (the stock must have split 3 for 2 sometime this year).
The chart of this 5th wave looks exceptionally good. There is alteration and every wave subdivides properly into 5 waves themselves. We are not trying to knock the Oracle of Omaha’s investment abilities, but given the 55% drop in the Great Recession we do not believe there is any difference between the performance of this stock and the market in general. What will be different is the sense of disappointment experienced with the crowd that still believes in the myth.
The Globe and Mail charts are no longer available for free, so I had to use Bigcharts.