We got most of this C wave spot on. However we were expecting a more sizeable drop in the immediate future. This may, repeat may, be incorrect. The simple reason is that the above C wave is starting to look an awful lot like a contracting diagonal. These are ending patterns and warn of a fairly fast reversal ahead.  This could after all still be a 4th wave that could be followed by a new high. Step aside untill the future has become the past and we can more accurately predict it.

You do have to look at a more detailed chart (not shown) to determine what happened the past two years, an a-b-c irregular wave 4 followed by a very clear wedge wave 5. This stock topped last year. If you do not look at the detail you may misjudge the situation in thinking that you just finished a wave four and still have 5 to go up. That is not the case. Often wave 1 is less pronounced or slips out of sight but it is definitely there in this case.

Expect a drop to the wave 4 level of previous degree and or 61% decline, more or less as drawn.

Never knew what these fellows do for a living! Apparently they are design engineers doing all sorts of projects. They are located at the top of the Don Valley Parkway.

You can see here that the stock obeyed the 15-year channel by stopping right on the line. Ever wonder how it knows the line is there? Well it does not , but every Tom, Dick and Harry and their brothers that have the faintest acquaintance with “technical analysis” and have received a ruler from their employer plus an in house training programme on how to use it, draw that line a thousand times a day in order to determine if they are there yet.

In more detail;

It would seem that the big correction has begun. (the best alternative is that the first 5-waves down was not wave 1 but wave A, even then the potential is towards $20). Wave 2 is nearing completion in this cluster of targets, c=a, 62% and the moving average. $33.58 embraces two of those so that is where this stock should be shorted. Normal targets, according to EW rules and guidelines, are at the 4th wave of previous degree, about $8.