This was back in Febr. 2011. The stock was trading at a P/E of 56, not that that matters. The chart showed a very , very, clear A-B-C corrective retracement of the big drop. Furthermore, it retraced a rather intriguingly precise 62% and reached the wave 4 or wave B level. I have shown dozens of these together with at least as many B-waves. Sometimes they remain suspended for months, sometimes they go a fraction higher but in most cases they will do the expected. Here is today’s chart;
The stock has dropped from $26 to just above $14, roughly 46% in 4/5 months. The P/E is no longer at 56 but at a more moderate 34 (still high according to the value investors that look for a P/E <10). On this move the stock might reach $10 where it hits the line and coincidentally again retraces 62% of the retracement. It may not quite get there in this bullish environment. In the end the stock could drop to $3 or so but if it does, it is unclear how it does it, so I would suggest leaving it alone at around $11.
I have no idea what this company does other than that it is in the semiconductor business. A look at the SOX index may add light to this analysis.