an impulse. $202 has to be a wave B of 2 top. Expect an A=C decline fow Wave C at $100. Wait for point 1 and 2 to be established to set up the down channel. We should have a fun time riding this down fast and furiously to $100. In between, there might be opportunities to play a countertrend bounce.
announced, DIS has been on a tear. It gapped up from the $115's to $122 and never looked back. It reached a wave iii top of $146. However it is primed for a wave v correction, 38.2% of which will take it down to the point where it gapped up.
counts. The preferred is the recent top as sub (i) with a Fib 50% retracement for sub (ii) of 5. The alt 1 count is more bullish with the recent top counted as the wave B of sub (ii) of 5 (flat) with a small down of A=C to complete sub (ii)flat of 5. Alt 2 is the most bearish with the expanding megaphone wave IV still in play.
The important thing to realize is...
which is typical for waves iv. A great ER could cause a gap and go. LLY is currently is a steeper meltup channel. A good ER will continue the meltup. A bad ER could cause a gap down to the lower channel and the Fibn 50% level. A horrible ER can cause it to drop far enough to meet the HnS target of $91 and the Fib 61.8 level
I am down to two counts, a preferred bullish count where wave 2 is set in stone and wave 3 in progress and a slightly more bearish count where wave B of 2 top just printed last week. The bullish count was a revision of an earlier count which calls for a wave 4 retracement of 38.2% to a target of about $165. In this case, the target is revised upwards to $183.84....
assumed to be a wave 5 top failed to materialize. I have an alternate count which I am elevating to preferred status. Here the previous high is simply a wave 4 and the subsequent correction fits a weave 4 to a tee. The attempt at the long term trendline was the third which failed. It might succeed at the next (Rule of 4).