AC

AC update from about two years ago, WJA

Hamilton

The usual then and now charts;

ac july 29 2015 bAC july 11 2017 b

So we got the drop from $15 to $5 pretty well  on target except that it did not quite get there stopping at about $7 instead. But we ignored the stock for the simple reason that we basically do not understand why anyone would want to own any airline stock!

Now, with the benefit of hindsight, we are leaning towards discarding the original count all together. The peak at $15 was not the end of a 5-wave sequence, just the end of wave 3, or, alternatively, we were not even in a bull market and what we are looking at is actually an A-B-C for a larger B-wave counter-trend rally which now has reached the double top level and may, therefore be complete. Additionally the A and C sub parts are now equal at least in terms of gains in the stock, each at about $14. This stock should be sold here and now.

WJA or Westjet is thrusting from some sort of triangle and may have a little more to go, perhaps up to $27 but it should then also be sold.

WJA july 11 2017

AC, Air Canada

Hamilton

The usual, then June 6, then Jan 4 and now charts;

ac june 6 2015AC jan 14 2016ac feb 8 2016

We only have a dollar or two to go and we will be at out target. You can enlarge the charts by clicking on them. When we get there this stock will be down by 2/3. This in the face of fuel prices dropping which should have given the company more lift. Where it goes from there remains to be seen. It should be a buy for a trade of few dollars, which on a percentage basis would be quite large. Thereafter my guess is as good as yours. Just remember there are other stocks, move to one with a clear pattern. This “diagonal” is one of the best and reliable. See also ABX for the expanding version.

AC, Air Canada update

Hamilton

The usual, then 4th of June, 2015, and now charts;

ac june 6 2015AC jan 14 2016

We hit the top right to the day, warning that this stock’s value would be cut in half (at least). In little more than one half of a year the stock fell from $15.07 to a low of $8. There is obviously more to go as the “wedge” should be retraced in its entirety at about $5.

The RSI is already well into oversold territory so there are various ways that this might be accomplished by making the correction more complex, but in the mean time you have saved yourself a lot of money already by exiting the stock.