Germany’s DAX index was up about 5 % and BMW went up with it. Today it peaked at Euro 66.65 which is where we anticipated it should go to retrace about 62% of the Mar-July drop earlier this year. Now there is absolutely nothing compelling about these Fibonacci ratios so it is not as if it has to stop here. It is just that if you want to make a wild guess odds are your results will be more accurate. We will see.
Almost a year ago we called for this stock to top at about $23, then drop to $5 but pause for a while around $10. $3 too early but in the mean time you would have saved roughly 1/2 of your money. The short term chart has a few ambiguities but nevertheless , looking at the “big picture” , there is once again an opportunity to save about 1/2 your money. See previous blogs.
Today’s action, so far at least smells like a third of a third. It now looks like a double is in the cards or perhaps a lot more than that if you are patient. When and if it gets to around $14 or so stepping aside would make a lot of sense as chances would be pretty good that you will be able to buy it back at a lower price if the wave structure warrants it then. The boost today probable was caused by the analyst at National Bank, taking a brighter temporary view on the stock with a $15 target.
We are there as expected, as close to $11 as you could wish for. The count on the small chart is unclear but on the big chart it is a nice 5 wave sequence even if the waves 2 and 4 do NOT alternate , as normally they do. In any event we have repeated the tech crash and the company is thoroughly disliked by everyone after throwing away 8 bln. on an acquisition (for a second time). No new products in the pipeline and 3 CEOs in as many years. There is absolutely nothing to like about these guys/girls but that may just be the right moment to tip-toe into the waters.
Accumulate shares peace meal , use stops just below your price or play this one with options.