Elliott Wave View in Bausch Health (BHC) suggests the rally from June 4 low (20.28) unfolded as a 5 waves impulse Elliott Wave structure. Up from 20.28, wave (1) ended at 21.9 and wave (2) pullback ended at 20.8. The stock then resumes the rally higher in wave (3) towards 25.85, and wave (4) pullback ended at 24.61. Finally, the stock ended wave (5) of ((1)) at 25.9.
The stock is now correcting cycle from June 4 low within wave ((2)). Wave ((2)) pullback should unfold in the sequence of 3, 7, or 11 swing. The current pullback is proposed to unfold as a double zigzag Elliott Wave structure. Down from 25.9, wave (A) ended at 24.64 as a diagonal structure. Expect a bounce in wave (B) then another leg lower in wave (C) as another 5 waves before wave ((2)) pullback is complete. We don’t like selling the stock and expect dips to continue finding support in 3, 7, or 11 swing as far as pivot at June 4 low (20.28) stays intact.