When you practise EW it is best not to think, for some that is not a problem, for others like myself , that is the hardest part. Here it is, a very clear completed a – b – c correction with the b as a triangle (somewhere). It drops back to the area of the 4th wave of previous degree, erases about 2/3 of the initial rise in wave 1. All exactly what a 2d wave is supposed to do! So maybe that is what it is: then there are only two possibilities. Wave 3 is next, or, a wave C of a much larger A-B-C counter trend correction is coming.  In both cases the stock should one day trade close to about $21. Just do it, don’t think about it. Using a stop at $8 will make it easier to swallow.

See previous blog. As with all triangles, the breakout can happen either way. In this case it did not go the preferred way, on top of which our stop-loss ceased to function due to the large gap open. But, on the positive side, this outcome is, paradoxically, more positive as the likelyhood of this being a wave 2 (instead of a b) has increased.

It took the better part of four months for the initial up leg from , roughly, $6 to $18 to complete. This triangle has now been at it for five months. So we know that it is not a fourth wave triangle so it has to be a B-wave. It could be B in a large A-B-C rebound to somewhere around $24 or the B in a smaller A-B-C down in a wave two targeting about $10/11 For the moment we still prefer the upside but with a stop at about $13.50.

The BlackBerry is doing as expected even if, as usual, it is taking a long time. Soon the stock should surge by about $6 –$9 if the triangle is correct. Keep a stop at $13 just in case this outlook, and the a-b-c correction in blue, is wrong.