Credit: Shutterstock photoBy Garrett Patten, ElliottWaveTrader.net
Berkshire Hathaway Inc. (BRK.B): Berkshire Hathaway has started to pullback after the impressive 20% run off of the February low. The shape of this rally has an encouraging Elliott Wave structure to support a sustained uptrend beginning, forming waves 1 and 2 of an intermediate degree 5th wave targeting new all-time highs and beyond. Support for the current pullback as wave 2 is between the .382 - .618 retrace, which is roughly 138 – 132.50. A stop below the .764 retrace at 129 should be used for this long setup.
Cisco Systems (CSCO): Cisco Systems has recently emerged from a year-long correction that culminated at the February low, staging a strong bounce that recently topped at the April high. Thursday’s favorable earnings announcement sent the stock soaring higher again, but price has yet to break out to a new high. If price remains below the April high, another swing down to 26.15 – 24.65 may be seen to complete a 1-2 setup off the February low. Otherwise, breaking above the April high supports a 3rd wave already in progress, taking price toward 37.
Moody’s Corporation (MCO): Moody’s has also rebounded strongly off the February low, after an extended correction that shaved over 30% off the 2015 high. Price has since dropped lower since a disappointing earnings report at the beginning of the month, but this pullback offers a buying opportunity. The encouraging Elliott Wave structure as waves 1 and 2 off the February low supports a breakout to new all-time highs later this year in wave 3. Support for wave 2 is between 91.45 – 86, with a recommended stop below the .764 retrace at 82.75.
NXP Semiconductors (NXPI): NXP Semiconductors suffered a devastating 45% correction from the 2015 high into the February low earlier this year, but has since rebounded strongly. The shape of this rally has an encouraging Elliott Wave structure to support a sustained uptrend beginning, forming waves 1 and 2 of an intermediate degree 5th wave targeting new all-time highs and beyond. Price has pulled back modestly since the April high, in what should be the start of wave 2. 78.60 is the ideal target for the pullback to complete, and begin the next rally phase as wave 3, but it is possible the dip deeper than that.
See charts illustrating the wave counts on these stocks.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
