By the same token, the Royal hit a low of $43.30 Friday morning. That could have completed the first 5 wave sequence. If not it might get just under $42 where it should also be a buy for a trade.
RY
RY, Royal , Canada’s second largest bank, update. BNS
In the end we actually got the expected $5 rebound, but by tripping over our own feet in trying to execute on that. Anyway, this is where we are now. The stock has dropped back to about $45 and is bouncing off the upper channel line of 7 or so months. The move from the lows might include a minor failed 5th wave, leaving a clear a-b-c. Whatever the case, it is not an impulsive move. It could be just the A of a larger A-B-C that will be more complex but nevertheless still a correction ( in grey ). Alternatively a triangle wave 4 (in blue) could be in the making. This too will kill time and will limit the upside to $50 maximum. Either way you should be able to buy this stock cheaper, perhaps much cheaper.
Looking at the Bank of Nova Scotia a more complex correction seems to fit best;
It looks like we are doing a small triangle wave b of an a-b-c wave 2 correction that could potentially take the stock to about $55. Then wave 3 down starts!
RY, do not second guess yourself
On the 23 of Sept this was the preferred count for RY. I even called it a buy (for a $5 trade). I never got in and changed the outlook twice after that, once correctly and once not so. The moral is that one should be patient and not second guess oneself all the time. We are our own worst enemies. Here is what happened so far.
As the 5th wave was extended a normal retracement is to the top of wave 1 of 5, $52, this is also wave 4 under an alternative count and close to a 50% retracement. Soon it will be a sell again.What is not clear, and consequently confusing, is if there was a wedge at the bottom, or a failed 5th. As I was looking to get out at $50 I missed $5 or 11% in a month.
Execution is everything!
RY update.
The Royal continues to not show its hand unambiguously. I still suspect that at least one other down leg is in the cards. The stock did not shoot up to about $52 as it would most certainly have done if the low was THE low. Also the intervening retracement was unusually deep, perhaps indicative of a triangle forming. All waves 2 shown are zig-zags, therefore it is likely , given alternation, that a wave 4 ,regardless of its degree, is a flat or triangle, sideways in other words. We will have to wait. Perhaps Slovakia’s rejection of the EFSF as the one and only out of 17 will get a ball rolling.