SNC, then and now

snc jan 2011

Back in January we noted that Lavalin  had retraced to a very nice Fibo number of 61.62 after tracing out an equally nice B-wave. The conclusion, as always an initial drop to about $41 and more after that. Here we are today;

snc  oct 25 2011

The actual top clicked in at just a few pennies higher and the stock dutifully drops to about $39. The way it does that could be 5-waves, or just waves 1-2-3-4 with 5 still to come. The rebound as either wave 4 or 2 is a clean a-b-c zig-zag that cannot go higher than $52 if a wave 4. We shall see but either way the next big move is down.