After having had a bearish stock market, some stocks have fallen to really cheap prices. Spotify is an example of it which has fallen down almost 77% from its' all time high. I know that the downturn might not be over but after having done an ewt analysis, the most probable count is showing a bullish future. This count is based on the fact that we have reached or almost reached a bottom (it still works as long as the price of it remains over 64$ a stock).
TA:
From the 24th of December 2018 to the 22nd of Februari 2021, the stock has moved in 3 waves as a flat* where the b wave was a triangle and the c wave was a large impulse that led to an all time high.
After this, the stock falled down as a zigzag** with a leading diagonal as wave a, another smaller zigzag as wave b and a normal impulse as wave c. This large fall ended with a new all time low just a little bit lower than the previous one.
So what does it tell us? Well if we refer to a normal 3 waves elliott wave pattern, this could be a huge inverted extended flat*** with the all time high marking the end of wave (a) and the all time low marking the end of wave (b). This means we should now (or soon) rally in 5 waves up as wave (c) to an all time high.
The count would only be invalid if the price drops sharply and quickly under at least 64$.
* A flat: is a 3 waves move with the second leg ending a bit lower than the start of the first leg. The first and the second legs can be developed into 3 waves sequences (b wave can also be a triangle) whereas the third leg should develope into a 5 waves sequence.
** Zigzag: A 3 waves move where the first and the third leg are themselves 5 waves impulses separated with the middle leg which is a 3 waves correction.
*** An extended flat: is a 3 waves move with the second leg ending a bit higher than the start of the first leg. The first and the second legs can be developed into 3 waves sequences whereas the third leg should develope into a 5 waves sequence.
TA:
From the 24th of December 2018 to the 22nd of Februari 2021, the stock has moved in 3 waves as a flat* where the b wave was a triangle and the c wave was a large impulse that led to an all time high.
After this, the stock falled down as a zigzag** with a leading diagonal as wave a, another smaller zigzag as wave b and a normal impulse as wave c. This large fall ended with a new all time low just a little bit lower than the previous one.
So what does it tell us? Well if we refer to a normal 3 waves elliott wave pattern, this could be a huge inverted extended flat*** with the all time high marking the end of wave (a) and the all time low marking the end of wave (b). This means we should now (or soon) rally in 5 waves up as wave (c) to an all time high.
The count would only be invalid if the price drops sharply and quickly under at least 64$.
* A flat: is a 3 waves move with the second leg ending a bit lower than the start of the first leg. The first and the second legs can be developed into 3 waves sequences (b wave can also be a triangle) whereas the third leg should develope into a 5 waves sequence.
** Zigzag: A 3 waves move where the first and the third leg are themselves 5 waves impulses separated with the middle leg which is a 3 waves correction.
*** An extended flat: is a 3 waves move with the second leg ending a bit higher than the start of the first leg. The first and the second legs can be developed into 3 waves sequences whereas the third leg should develope into a 5 waves sequence.