Fractal/Elliot suggests CYDY > $3.80 on Coronavirus news cycle
The super-hot bio-tech startup Cytodyn with their humanized monoclonal antibody Leronlamib has been on a tear up 1000% since November 2019 lows ($.26). The rally has been driven by many press releases: stabilized financing and marketing contracts, amazing results in their early cancer trials and now serendipitous immunological application to severe coronavirus patients. But despite the news-driven nature of the rally, price has been bouncing in fractal waves with usual structures expected by 100-year-old "Elliot wave" theory. Experienced fractal technicians can predict good profit-taking zones where price is likely to be driven or correct after each press release.
www.cytodyn.com/investors/news-events
www.instagram.com/cytodyn_offical/
According to fractal theory of market pricing, strongly trending stocks and indeces tend to move in nested 5-wave zig-zag channels. CYDY has been clearly following this behavior in its December uptrend, with 5 clear up waves into major wave I at $1.64 (we predicted $1.60) in January. As expected, 5 clear subwaves can be seen in waves 1, 3, and 5 of I, while the 2 and 4 corrective waves have less clear structure.
Wave III into $3.50 on Monday was very fast -- driven by last Friday's press release on the first 4 severe coronavirus patient responses. Wave III had a huge gap and spike over the weekend that obscures any internal substructure. Wave IV appears to be a triangle that collapsed back to $1.90 Monday then back up to $3.40 this morning in 5 clear microwaves (try zooming on this week), then again collapsed back toward $2. This triangle consolidation bouncing between $2 and $3.40 may go on for a couple weeks until the next meaningful trial results drive wave V past $3.50. It's possible wave V goes to $5-10 on powerful enough news, but wave V heights are often about wave I height. Measured from the center of the wave IV triangle which we now assume to be (3.50+1.90)/2=2.70, one can project a wave V top price of around 2.70 + (1.64-.26) = 4.08 (or higher). At that point we would expect another large correction back toward $2 or possibly even filling the gap at $1.40, not because of anything particularly bad happening with CYDY but just because of typical investor psychology and volatility after 2000% gains. There are fascinating relationships between these expected fractal oscillations and Nader's press releases. Several times we've seen the bigger corrections after a conference call or press release that simply suggests investors will need to wait a few weeks more for major news. This gives shorts and market makers a chance to drive down price without risking another huge gap up on amazing news the next day.
Hopefully wave V will turn out to just be a larger ONE, the big correction TWO on its way to a larger FIVE in the $20-50 range as FDA approves leronlamib for HIV, cancer, etc and high volume sales commence.
www.cytodyn.com/investors/news-events
www.instagram.com/cytodyn_offical/
According to fractal theory of market pricing, strongly trending stocks and indeces tend to move in nested 5-wave zig-zag channels. CYDY has been clearly following this behavior in its December uptrend, with 5 clear up waves into major wave I at $1.64 (we predicted $1.60) in January. As expected, 5 clear subwaves can be seen in waves 1, 3, and 5 of I, while the 2 and 4 corrective waves have less clear structure.
Wave III into $3.50 on Monday was very fast -- driven by last Friday's press release on the first 4 severe coronavirus patient responses. Wave III had a huge gap and spike over the weekend that obscures any internal substructure. Wave IV appears to be a triangle that collapsed back to $1.90 Monday then back up to $3.40 this morning in 5 clear microwaves (try zooming on this week), then again collapsed back toward $2. This triangle consolidation bouncing between $2 and $3.40 may go on for a couple weeks until the next meaningful trial results drive wave V past $3.50. It's possible wave V goes to $5-10 on powerful enough news, but wave V heights are often about wave I height. Measured from the center of the wave IV triangle which we now assume to be (3.50+1.90)/2=2.70, one can project a wave V top price of around 2.70 + (1.64-.26) = 4.08 (or higher). At that point we would expect another large correction back toward $2 or possibly even filling the gap at $1.40, not because of anything particularly bad happening with CYDY but just because of typical investor psychology and volatility after 2000% gains. There are fascinating relationships between these expected fractal oscillations and Nader's press releases. Several times we've seen the bigger corrections after a conference call or press release that simply suggests investors will need to wait a few weeks more for major news. This gives shorts and market makers a chance to drive down price without risking another huge gap up on amazing news the next day.
Hopefully wave V will turn out to just be a larger ONE, the big correction TWO on its way to a larger FIVE in the $20-50 range as FDA approves leronlamib for HIV, cancer, etc and high volume sales commence.
Trade active:
I posted a more short-term prediction for the triangle region here:
Whether or not it plays out exactly like this it's useful to to think of markets as mechanical bull programmed to throw off as many investors as possible on the way up. Bouncing between extremes of 5-wave fractal channels is the surest way to trick out naive human psychology, so it's inevitable. But once you understand this inevitability you can benefit. Practice waiting patiently for the vth of the 5th of the Vth wave (in the nested fractal oscillations) before selling any major stake. Smaller sales can be done at the vth of the 5th of the I and the vth of the 5th of the III majro wave tops, with buyback in the 2 and 4 corrective waves.
Whether or not it plays out exactly like this it's useful to to think of markets as mechanical bull programmed to throw off as many investors as possible on the way up. Bouncing between extremes of 5-wave fractal channels is the surest way to trick out naive human psychology, so it's inevitable. But once you understand this inevitability you can benefit. Practice waiting patiently for the vth of the 5th of the Vth wave (in the nested fractal oscillations) before selling any major stake. Smaller sales can be done at the vth of the 5th of the I and the vth of the 5th of the III majro wave tops, with buyback in the 2 and 4 corrective waves.
