COM,Cardiome Pharma

Back in January, when the stock was around $6, this looked like a speculative buy for a target of around $11. “Speculative” to me means that there is a very low level of confidence in the EW count , and on top of that all smaller pharma companies are inherently unstable by the nature of their business. Anyway, this one did not work. Here are the charts again;

com jul 2o11 1 COM july 2011 2

Typically after the C – wave wedge is complete the stock shoots up rapidly back to the starting point. This did not happen. Instead it kept going down.

One way to “explain” all of this is to change the count in such a way that the correction from the top after the initial, fairly clear ,5-waves up, to a-b-c X a-b-c (a double zig-zag). It still signifies an A-B-C correction, except the structure is different. It would require one more low at about $3 and up from there.

Alternatively the original count could still be correct and once this decline in a wave 2 is over the climb up will continue. This view is contradicted by the fact that the rise should have been very rapid which it is not.