Technically
1) before the incident the stock traded on the upper end of the 10y old trend channel
2) There is a RSI divergence on weekly chart.
Drop has been inevitable, but triggered from the sad news.
It filled just 20-25% of the channel width, which means there is a room for more drops. Investigations just started and they can be very long.
The industry is slow and heavily regulated.
This stock is SHORT for at least 2-3 months. Long term (2-3 YRS) it is a good company with very long history and LONG position can become very attractive at $230-240. This is quite aggressive is it constitutes 45% drop.
This level is at 1.618 Fib level of the C Elliott wave started 02-2018 and can be expected as early as August - September 2019
Goodluck and trade with care.
1) before the incident the stock traded on the upper end of the 10y old trend channel
2) There is a RSI divergence on weekly chart.
Drop has been inevitable, but triggered from the sad news.
It filled just 20-25% of the channel width, which means there is a room for more drops. Investigations just started and they can be very long.
The industry is slow and heavily regulated.
This stock is SHORT for at least 2-3 months. Long term (2-3 YRS) it is a good company with very long history and LONG position can become very attractive at $230-240. This is quite aggressive is it constitutes 45% drop.
This level is at 1.618 Fib level of the C Elliott wave started 02-2018 and can be expected as early as August - September 2019
Goodluck and trade with care.