warrenbudget

PLANET SHORTS. Jk. Be patient... we may have another leg up

NYSE:PLNT   PLANET FITNESS INC
I'm showing this chart in this fashion for a few reasons. Let's take a look at the EW count. We have just completed wave 3 of 3 of the largest count. Currently going into wave 4 of 3 and should wrap this up in the next couple days. The EW count suggesting that we still have another leg up is justified by the 4 overlaying indicators here- let's take a look.

RSI: yes we bounced off the divergence of the daily, but we have a ways to go before reaching a critical limit suggested by the supporting RSI . The EW count suggests we can continue to be extended. We took quite a hit on the RSI when we fell ~3% last week, leaving room to continue the upward price action.
MACD- tapering off but still bullish .
ADX- Green is above the red, still bullish .
ICC - falling out of the sell zone, but this chart does not have an extensive history so I wouldnt trust this indicator as much. What we can deduce from this is that we are heading toward the neutral zone. This should deter us from any impulsive selling.
Fib time zones- the next wave lines up well if you count the 1 to the 2. WE AREN'T THERE YET.

Ultimately, if you believe the EW count, and interpret that the indicators are not suggesting any impulsive selling, then you should wait to short this. Major indexes suggest a small pullback is coming. This may come right before earnings season (early this week), and allow for a setup to go long for wave 5's.
See my long term chart for what the heck is still to come. GOOD LUCK.
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