BAC, SHOP, WPRT updates 12/6

BAC: In the November 16 update, see here, I was looking for $29. We got $29.25. Big fat BINGO! Now, if we zoom in on the advance off the June (red) intermediate-iv low, we see a) a Leading Diagonal Triangle (green) minor-1 (1st) wave; b) the minor-3 wave hitting the 1.618x extension to the T; c) the minor-4 wave hitting the 100% extension to the T; d) the 5th wave hitting the (green) 200% extension to the T (classic 5=1 relationship: green line) with a picture perfect 5 minute waves as well.. This tells us that 5 waves up off that June low have completed and that (yellow) major-3 is most likely in. Everybody on WS is now chasing banks… and the majority tends to get punished…

BAC

If we zoom out we see the 3-wave advance off the very important February 2016 low. Unless this final 5th wave extends, and that is always possible, but impossible to foretell, and for now since all the waves followed the perfect Fib-extensions script not thought likely we should see price move down to the 38.2% retrace of major-3 at around $22.68.

BAC-2

Once that 4th wave is complete we should see one final larger major-5 wave to new ATHs to complete 5 primary waves. The larger alternative is of course that this was only a 3-wave counter move of a much larger decline since the 2007 highs. But, since the internal waves of the major waves are all impulsive down to the minute degree I find that much less likely (20% odds). However, that’s what stops are for. Thus, going long at around $23-22 will be a low risk/high reward setup. Simple set a stop $1 or $2 below $22.68 (which is major support) and you’re good to go.  If you are currently long, it depends on when you bought and your investing time frame and how much draw down you can stomach. 5-10% trailing stops are always recommended.

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SHOP: New ticker based on member request. Counts best as now in intermediate-c of major-4. The (Red) c=a relationship targets the 38.2% retrace at 86.03 to the T. Buyers can step in at around that level with a stop at $80. Major-5 target as of yet unknown as there’s not been any 1st and 2nd wave up off the major-4 low and major-4 hasn’t even been reached yet.

SHOP

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WPRT: Remember the update from November (see here)? I was back then looking for a possible 5th wave up, without overlapping the 1st wave high. Unfortunately it did overlap that 1st wave high and thus the recent low can’t be a 4th wave. I recommended back then “one can long it on a break above the 50d SMA, now at $3.24 with a stop at $2.60 or at the lower rising red trendline (now at $3.02) Simple.” Well that break higher above the 50d SMA never happened so there’s no harm done cause we didn’t take the trade. Although it can now well bounce higher from this S/R level (white box) I do think upside will be limited.

WPRT daily