stock update 10/25/2015: CMG, LNKD, MCD, TSLA

CLICK CHARTS TO ENLARGE

CMG: This stock is now in Primary IV. The first chart shows the detailed count. Wee can see that Primary II (blue) was a zigzag, so we anticipate IV to be a flat because of alternation (not necessary but 9 out of 10x the case). We can see that alternation also for the major 2 and 4 counts (flat vs zigzag) and now primary II and IV will also alternate but opposite (zig zag vs flat). Perfect. In this case we’re dealing with an expanded flat, where c (in this case major c) is often 1.618x a. That brings us then exactly to the 23.6% retrace of all of III: $630. IF major c extends, then we’r dealing with the 38.2% retrace at $560. We expect the former target over the latter though.

cmg 2 dayIf we move on to the bigger picture, the weekly chart below shows the Primary III, IV and V targets we outlined on August 4 (see here). We then expected Primary III to peak between $790-$880. It got to $758.  Only $32 (4% shy of our target zone). Price is now well within our ideal Primary IV zone, but should drop a bit lower; likely to the lower trendline. If that doesn’t hold support then we need to look to the 2.618x extension. However, we still keep our primary V target zone of $950-$1025, with most likely the lower price as the realistic high.

 

 

cmg 7 day

 

LNKD: Is now in intermediate c of Major b. The (Red) c=a targets the 23.6% primary I retrace level at $224. Of course c can extend, but the $225+/-$10 area was previous S/R and we expect the same now. IF that is the case, the a major c=a relationship targets extactly the 76.4% retrace of Primary I for Primary II. That’s at around $110-$105. For now, we’ll keep monitoring intermediate c of major b, to determine where it will peak and from there we can then even better establish a primary II low.

lnkd

MCD: Over the past weeks we’ve been saying in our tickers list in the daily update that MCD was about to break out, which it did two weeks ago. Now price is in major 3 of Primary V. Using standard Fib extensions for a third wave (the market will then decide if it will use those or not: anticipate, monitor, adjust!), we can set a major 3 target zone of $115-$120, a major 4 zone of $110-107 and a Primary V targetzone of $123-$128. Hence, at current levels, there’s not much upside potential left, but a whole lot of downside risk… Please adhere to tight stops when long.

mcd

TSLA: The stock’s inability to rally over the past 3 weeks, while the overall market’s gained 11% tells us something ain’t right with it. As such we see TSLA now in major c of Primary II. So far it looks like we’re dealing with a zigzag and then we can set 3 targets for TSLA: c=a @ $178 (recent major 4 low: heavy support; hence a bounce should be expected from here: intermediate b of major c); then we have c=1.236x a @ $144, which is close to a 50% retrace of all of I, and the c=1.618x a extension at $122; which is exactly the 61.8% retrace of Primary II. IF we were to put our money on these targets than we’d say the latter as 2nd waves, in this case primary II, often retrace 62% of the preceding first wave and since c-waves often are 1.618x a. Overall it’s a classic, text book target. See the purple arrows for each target. However, we’ll need to continue monitor price and the wave action to be able to better zoom in on where Primary II will indeed bottom.

tsla