Two counts possible but the one shown, in both charts, is the preferred. The reason is simple, the B-wave, shown separately in purple, is near perfect which strengthens the view that it is not a 5th wave (the alternative count). The whole structure is a “flat” 3-3-5, or a-b-c, a-b-c, 1-2-3-4-5. The stock has only existed for a few years so presumable this is all of wave 1 up, followed by wave 2. Typically waves 2 retrace very deeply into the gains of wave 1. This one has done over 65%. The company makes robotic non-invasive machines for ortho-whatever , knee surgery. They reported a 66% increase in surgeries done with their equipment but also lowered their expectations with regard to sales, for a second time but not by much. There are 42.5 mln. shares with 32% held in short positions, an unheard of proportion. Goldman Sachs, conveniently downgraded the stock yesterday from “buy” to “neutral”, a change in target from $36 to $17. Should we assume that therefore they did not hold any short positions?? Jim Kramer passionately hates the stock, citing the cockroach theory.
Someday, in the not too distant future, this stock should trade at $27,25 which would constitute almost a 50% increase. Short of a minor 5th of 5 of C, this should be a buy. The rebound could be rather violent if the shorts try to find an exit. As always consult your broker!
P.S. Now that the day is over, maybe the missing 5th of 5 of C was added to take the stock to a $13.80 low. From Bloomberg;