NVS – Novartis A G

Last Updated May 31, 2019

Counts very well as completing an ending diagonal major-5 wave to complete blue Primary III. The issue with diagonals is they are very hard to track, but when the complete price will move swiftly out of them and retrace often the entire pattern. Hence, there maybe one more (red) intermediate wave-iv and v coming but a break and close below the lower trendline of the diagonal tells us the party is over and we’ll be looking for mid-50s first before Primary-V takes hold to ideally new ATHs (blue path).

So upside potential is most likely limited from current levels, while downside potential is rather larger. IF one is long NVS it would be prudent to raise stops to that lower ascending trend line as the alternate option is that all of Primary V already topped and a decline to around $35 is underway. Yes, never take anything for granted -not even my work- and always protect profits. One can then decide to possible re-enter longs in the high to mid-50s with a renewed stop-loss at say $50, if so desired, to ride the most likely scenario (Primary V) to new ATHs.