It seems to me that instead of 2.50, 2.35 is the end of Wave C. $ALT now has completed Wave 1 @ 2.89. Ideally, $ALT should move higher than the 2.90 high of Wave 1-3. However, if 2.89 is what the price movement tells us, we will accept it as such. What follows is a 3-wave retracement forming Wave 2. I expect it to be flat. I will be exiting @ Wave 3 high for I anticipate that the retracement will be stiff. Those who have strong stomach can simply sit down until the end of Wave 5.
As for $CAL, it appears to me that no clear low has been established yet and the 8 coming waves will show traders what decision to take.
$CAL now is in the last stage of Wave A @ 2.75. A 3-wave pull back will follow to establish that final bottom in preparation for the rally. I see at least 3 prices as candidates for final low: 2.60, 2.30 and 1.50 is the worst case scenario.
After the bottom has been established, I am expecting a bounce towards Wave C formation. Once Wave C is complete, that is the time to observe closely the movement of the stock. If it will resume its downtrend, that's the time to say "goodbye". But if $CAL will reverse its trend, that's the time to take a long position.
Note:
I just kept this analysis to myself for the past 2 days for I am still testing my knowledge of EWT. However, it is encouraging to see the relative accuracy of EWT analysis with what happened to $DD and also with what's happening to both $ALT and $CAL. This analysis is in no way a recommendation to buy these two stocks.
As for $CAL, it appears to me that no clear low has been established yet and the 8 coming waves will show traders what decision to take.
$CAL now is in the last stage of Wave A @ 2.75. A 3-wave pull back will follow to establish that final bottom in preparation for the rally. I see at least 3 prices as candidates for final low: 2.60, 2.30 and 1.50 is the worst case scenario.
After the bottom has been established, I am expecting a bounce towards Wave C formation. Once Wave C is complete, that is the time to observe closely the movement of the stock. If it will resume its downtrend, that's the time to say "goodbye". But if $CAL will reverse its trend, that's the time to take a long position.
Note:
I just kept this analysis to myself for the past 2 days for I am still testing my knowledge of EWT. However, it is encouraging to see the relative accuracy of EWT analysis with what happened to $DD and also with what's happening to both $ALT and $CAL. This analysis is in no way a recommendation to buy these two stocks.
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