L, Loblaws

L 2011l l 2011 s

This is a grocery store  stock that got killed a few years ago. It lost 2/3 of its value and dropped into the level of the 4th wave of 3 and then some. The drop is a perfectly symmetric zig-zag, 5-3-5 structure . By all standards this very likely means that the entire “correction” is complete. Even if it is not , one would expect an initial rebound back to the wave b level of the correction at about $55, and possible much higher thereafter. From the present $39 that is a gain of about 40%. In this scenario the stock should not trade below about $37 as this would cause overlap, so $2 risked to get $16, an acceptable risk/reward ratio.