No triangle here, just a simple a-b-c. Sell here or anywhere between here and $32.5

After a little hesitation the stock broke well below the expected $26 retracement level, retracing $6 to $7 of the initial rebound. This still could be the anticipated b-wave of a flat, however it could also indicate that a triangle is forming. If it is going to be a triangle the stock will not move much higher than it already has (on the news of some deal with CAT). The only way to play this is to use a very tight stop. The stock could ultimately fall to about $20 if there is a triangle. Furthermore it is not at all clear at this time what degree of a triangle we would have, 4 of 3 or 4 period.

Westport did shoot up but did not quite make it to the $32 target (even if it did gain $8 off the lows). The question now is was this it or only 1/2 of the bounce. The drop back to $26 is as expected but from here on there is still a reasonable possibility that we have only done 1/2 of the bounce. The C part could start any moment and then would bring the stock right into the expected range.

After today’s idiotic 300 point move on the TSE, the predictions on this stock are now increasingly more plausible. Check previous blogs, but the story essentially was that it could not go lower than $22.50 and even at $25 should gain some $8. I am myself always amazed how accurate this stuff (EW) often is. I cannot afford detailed tick charts so I assume that wave a was a 5 wave move. Wave B to about $26 as predicted occurred yesterday. Wave C probable completed wave 3 of C and will have a minor pullback in the morning followed by the 5th. That should take it to the anticipated $32/33 level. $8 on $24 is roughly 30% absolute. but as they say in Holland, don’t sell the skin before you shot the beast.  Anyway a sell at around $32. For the sake of a good understanding, that does not mean that the stock cannot go to $300, whatever, it is just not the thing we understand at this time.