Following the recent sell off in the US market and general nervousness of investors is Intercontinental Exchange Inc 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.
Thanks
PS Below is the Educational post about Ending Diagonals
I was thinking it cold go to 110-115 then drop again and retest 90 or lower then go to 140. similar to your take. The BKI merger might mess things up, or drag out things.