There is no change from the June blog except that in the small chart the high point of the b wave is one notch further to the left. This has the effect of lengthening the process but hardly has any perceptible effect on the downside of the price. The $6 target was probable arrived at by my sloppy “eyeballing” the distance. If you look closely at the Bigchart in the June 5 chart, which is identical to the one now shown, the actual target is just below $5, not $6. At today’s lows this target has been met. The first logical upward target is around $9.30

Just a little over a month ago we suggested that this stock might be a buy at about, give or take, $6. Here we are today at that price and have no reason to change our mind.

The stock was at $6.70 at the time but as we were looking for symmetry we chose the point where the two legs would be vector equal, that is $6.

This is a multi-level sales organisation that has been around for as long as anyone can remember. Not the best business model but on the positive side it is perhaps good to keep in mind that the stuff that they sell is counter-cyclical. Also the RSI and MACD are holding up nicely despite the stock’s slide. The stock is down about $40 on $46, or 87%, quite an impressive correction. A buy for the serious investor!

Avon is a multi-level-direct-sales organisation that sells perfumes and other such toiletries. It is a company for women according to the slogan and it has been around for more than 125 years. You may recall that in My Fair Lady the swindler was Hungarian. In the latest hoax involving Avon the swindler was from Sofia, Bulgaria and he too used the power of speech rather to swindle than teach by posting phony takeover bids. The important thing about that is that the stock was receptive to this sort of hype. In the future it should not take much to move it up a few dollars.

From an EW perspective the stock has completed (almost) an A-B-C correction down for which the proper labelling is  W-X-Y   don’t ask. The symmetry of this structure is absolutely amazing. Any moment now, give or take a few days and a level +/_ $6 and this should be ready to turn. RSI and MACD are both already on board. If, alternatively, one would argue that the (failed) top actually occurred in 2008 rather than 2004, the same equality relationships still hold with respect to amplitude (but not time). So the count is very robust.