close icon

Alteryx Stock Got Cut in Half by Elliott Wave Setup

We first wrote about Alteryx in the fall of 2020. The stock was surging after a better-than-expected Q3 revenue guidance and was quickly approaching $150 a share. With a market cap of roughly $10 billion back then, apparently it didn’t matter that this data analytics software provider was barely profitable.

In the era of money printing and meme stocks, the market wasn’t too interested in the company’s fundamentals nor valuation. So we took the other route and examined the stock through the prism of the Elliott Wave principle. Here is what we found on October 6th, 2020.

Alteryx stock poised for an Elliott Wave drop

Eight months ago, the 4-hour chart of Alteryx revealed an almost complete 5-3 wave cycle. There was a very clear impulse pattern to the downside, labeled 1-2-3-4-5 in wave A. It was followed by what we thought was a corrective recovery in wave B.

Ahead of the 50% Crash in Alteryx Stock

The corrective sequence was already close to the 61.8% Fibonacci resistance level. So, we thought “a bearish reversal … near $155 a share makes sense. Wave C could then drag Alteryx stock down to $100 or lower.” The updated chart below shows what happened next.

Alteryx stock tumbles over 50% in under 8 months

The best Alteryx bulls were able to achieve was $154.83 on October 12th, 2020. The following eight months have been a real nightmare for them. On May 19th, the stock fell as low as $73.32, down 51% from when we wrote about it and 60% from its record.

However, we think the stock is still not cheap. It trades at a forward price-to-sales of 9 and its price-to-earning ratio is in the stratosphere. With that in mind, it makes sense for Alteryx stock to keep sliding going forward. Wave 3 of C to the south seems to be currently unfolding. The bears remain in charge.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Three Months Ahead of NovoCure ‘s 35% Plunge

Our first and only article on NovoCure stock was published almost three months ago, on July 1st. In it we shared our view that the tumor treatment company was not only significantly overvalued, but in immediate danger of a large stock price drop. The stock had just fell 15% in one day, despite positive TTFields…

Read More »

MongoDB – Bearish Pattern Joins Nosebleed Valuation

MongoDB Inc. is a general purpose database platform developer and provider. The company was founded in 2007, but only came public ten years later – in 2017. During the following four years, the stock has risen from an IPO price of $33 to $515 a share as of last week. So, it is fair to…

Read More »

Pandora Does Things Right. Stock May Need a Breather

When we wrote our previous article on Danish jewelry maker Pandora in December, 2020, the stock was up over three-fold since March. That recovery from DKK 180 to DKK 651 didn’t not come out of the blue, though. It was the result of a bullish setup we managed to identify as early as July 2019.…

Read More »

Match ‘s SP500 Inclusion a Good Excuse to Reach $200

Match Group Inc. rose over 10% in post-market trading Friday following reports that it is going to be included in the S&P 500. The company, which owns Tinder, OkCupid and most other major dating apps in the U.S., has a market cap of over $41B. Despite the anticipated “summer of love”, though, this is not…

Read More »

Cameco Stock Seems to Have Finally Turned a Corner

Uranium spot prices are on the verge of breaking above $34/lb, up over 80% from the bottom of $18/lb reached in late-2016. Cameco, as one of the world’s top uranium producers, is now seeing its stock price rising in tandem. Yesterday, it closed at $19.16 after reaching $21.95 in June. We first covered Cameco in…

Read More »

A Fresh Look At Cigna ‘s Elliott Wave Super Cycle

In a case study article on Cigna, published in October, 2016, we examined how a fundamentally sound and undervalued stock can still drop nearly 90%. The reason for that crash didn’t lie in some company specific issue. Rather it happened to occur during the biggest financial crisis in 80 years. Nevertheless, we made the point…

Read More »

CBOE Takeover Rumor Lifts Stock to Elliott Wave Target

We first wrote about CBOE Global Markets less than eight months ago. The S&P 500 had already recouped all its COVID selloff losses and was hovering at new all-time highs. CBOE, in contrast, was still down 30% from its 2018 record, trading below $97 a share. For some reason, the market was ignoring the company’s…

Read More »

More analyses