Back in July we ventured a guess that the stock might drop to anywhere between $10 and $4. It does not look like we are there yet, even though we reached the b-wave level on the way up. Al is so often the case, nothing is perfectly clear but another, 5th way down does appear to be in the cards. The stock is already down 55% from this year’s highs.
We missed the boat, recognized this one too late.
If you heeded my prediction that the Dax would find support at around 5100, and bought in, you are now up about 13.7% from that level. I would recommend getting out!
As illustrated a few times since, it looks like the DAX has not yet completed a 5 wave sequence down, which is fairly clear from the trend lines. Wave 4 would normally retrace about 40 to 60% of wave 3 (which in any case is the bulk of the drop). It is now on the upper trend line, at approximately the wave 4 level of 3 down and c=a , roughly,of wave 4 of 3. Time to get out. To belabor the point , we ad Siemens for further illustration;
The equivalent charts for the German EWG (see above blog) are;
The story is the same.