VET again

vet diagonalford diagonal

We are intrigued by the possibility of there being a “diagonal” in the Vermillion stock. For comparison purposes we dug up another diagonal that occurred a few years ago in Ford’s stock. In that case it was a 5th wave whereas in the case of it is a c wave. 5th or c the structure should be identical from the starting point. I will let you be the judge. Remember that you can enlarge the charts and move them around for a better comparison. Also, below, we have a count that could possible explain how this fits together;

VET dec 3 2014

In this count wave 3 is the longest which is normal but waves 2 and 4 (so far at least!) do not alternate which raises the suspicion that potentially a triangle might be forming.  In any event the stock fell precisely to the bottom trendline and cannot fall much further (about $3) as then there will be overlap. At this stage, given the situation in the industry it is highly unlikely that this stock would shoot up as a result of generic factors. Consequently we would look for stock-specific or idiosyncratic factors, perhaps a take-over. We will see.