KORS revisited

KORS july 10 2015

We got this one wrong, twice in a row, in both cases because we interpreted wedges as 5th waves whereas, with hindsight, we now know that they were not. Counting waves is an art and not a science therefore it is always advisable to ignore those trade ideas that are incorrect – you do that by using stops.

     Now that we are here $35 looks to be the right target, perhaps even a little too low. There is a whole cluster of potential targets at that level or just above. For one thing it is the level of wave 4 of previous degree, maybe. It would be a correction of 61.8% at about $38. Both the MACD and the RSI are calling for a turn. Particularly the RSI is improving from an unusually reading not seen on this stock since inception or on most stocks in general. It is a buy here or between here and $35 for , at least, a decent bounce that should reach the gap or perhaps even close it.