For more than a year I have not updated this stock. The reason is quite simple this – I have no idea where it is going. The beauty of EW is that you focus on those things that are clear and ignore everything else. This approach obviously contradicts that of the average research analyst.

Anyway this stock dropped from $17 to $6, roughly the normal 2/3 that one might expect so on that basis is might be a buy. Also the pattern could be counted as an a-b-c X a-b-c which is a completed correction so the next move should also be up. But , if there should be a 5-wave sequence down (a different count) then there are only 7 or 8 legs so far so one more leg down should be forthcoming. I have personally never understood how you determine what is correct , so I avoid it.

Best guess would be back to the other side of the channel and then down again. I am not sure that it can go that far though. $8 or so “looks” toppish.

For the longest time I had this as a buy just under $8, un till I was pressured to revisit that call, and of course I could find half a dozen reasons why it might not work. So far it actually has. The original rational was that wave 5 could not be longer than 3.

In the May blog we suggested CLC might find a low at about $8. The structure was that of a diagonal or wedge. Each leg within the structure should consist of 3 legs. In the top chart , starting at the beginning of 2010 that is the case. The last leg itself should consist of 5 waves, it is. The only thing that could be missing is the 5th of the 5th. It is probable a buy now!On second thought this may still be too high. The chart is hard to get but this one is from the website;

The wedge idea may be incorrect. Instead it may be a double zig-zag a-b-c X a-b-c in which case $7,50 looks more appropriate. Also the wave 4 of previous degree is even lower than that, more like $7. The difference between the top chart and this one is that it is semi-log scale, which puts the equality point somewhat lower. Furthermore, the wedge up may comprise the entire wave up putting wave 4 at $5, not $7.