STM - Another Push UP Say Candles, Broken Resistance, and Elliot

16. Feb. 2017

Been riding this pony for while and it is time to jump back in. Two Falling windows have formed, indicating a reversal is due, the top part of the patter forming resistance. Today price gapped ABOVE BOTH of these indicating the pullback failed. Note also on the move up we had four rising windows, all but the last one confirmed. At today's close, we will have the fifth rising window complete. So we have 80% chance price will go up. TSI has turned positive, Connors still below overbought threshold. Finally, I have labeled the Elliot count for this chart....which show we are in wave 5 of the primary impulse wave that started back in July. Wave three is extended, and guidelines say that when this happens wave 1 and 5 usually equal each other in terms of movement. Of course everyone knows this IoT stock has good fundamentals. The stop can be nice and tight, set just below the bottom of the gap, or just below the bottom of wave 4. Target 16.50 for long term. 15ish for mid term, which is 1.618 of wave 4