ICE - Short Term Burst Before The Fall Continues?

NYSE:ICE   Intercontinental Exchange Inc.
Following the recent sell off in the US market and general nervousness of investors is ICE attractive for short term gains?
Let's look at it in more detail.

Fundamental indicators:
  • Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years
  • Profit margin - varies between 25% and 40%, so it is highly efficient company
  • P/E - 13.4x which is considerably lower than the current S&P500 ratio
  • Liabilities - liabilities to assets are within the norm, but debt to equity has been rising for several years and considered to be high

Technical Analysis (Elliott Waves):
  • Following the correction of March 2020 shares of ICE have enjoyed explosive growth cycle which is visibly slowing down now
  • And when the fifth wave is forming by a choppy movement in price it is very likely to be an Ending Diagonal, in this case Expanding one
  • It is likely that wave 4 has completed and we can expect another zig-zag to the upside to update the historic high of $139

Alternative Scenario: one of the risks with this scenario is the exceeding depth of wave 4 so as an alternative it is possible that the whole wave 5 has already completed, let's see how things develop

What do you think about ICE and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves.


PS Below is the Educational post about Ending Diagonals

In search of the optimal signals

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.