close icon

AMN Healthcare Has Some Falling to Do

AMN Healthcare is the largest healthcare staffing in the United States. It recruits healthcare professionals and places them in different working positions in the field of healthcare.
AMN Healthcare Services Inc. investors saw its stock price changing for the better during the last five years. In October 2011 it fell to as low as $3.60. In August 2016, shares were already hovering around 45.00 dollars. While the stock is currently trading slightly above $36 a share, investors, impressed with AMN’s past performance, are probably eager to buy the dip now.
Well, in our opinion, this is not a good idea. Let’s explain why by starting with the 30-minute chart of AMN Healthcare stock, which is going to show us the most recent decline from $45 to $33.77.
amn healthcare 30m
The Elliott Wave Principle is market forecasting method, based on price pattern recognition. It states that five-wave sequences, called impulses, show the direction of the larger trend. Among its other rules is that every impulse is followed by a three-wave correction in the opposite direction. Take a look at the chart above again. As visible, AMN stock fell in five waves, labeled 1-2-3-4-5. The sub-waves of wave 3 are also clear. This means the stock’s trend is now pointing down, at least in the short term. The 30-minute chart also suggests the recovery from $33.77 is just a temporary correction in wave (b), before wave (c) takes the price even lower. How low? We need to take a look at the bigger picture, in order to find the answer.
amn healthcare weekly 5.9.16
Due to the fractal nature of the markets, the same patterns can be found on all degrees of trend. The weekly chart makes the entire development since 2011 visible. It shows that the bull trend we witnessed in the last five years is another impulse. Putting all pieces of the puzzle together, it turns out AMN Healthcare stock is in a long term uptrend, but it has to go through the negative phase of the 5-3 cycle, before the bulls return. The weekly chart puts things into perspective and allows us to see that wave (c) could be expected to cause a plunge to the price area between $25 and $20, where the support of wave (4) of the impulse is likely to prevent AMN Healthcare from falling further. So, instead of buying the dip now, we believe investors should prepare to see AMN Healthcare stock down by another $11 to $16, before the next low-risk buying opportunity emerges.



Stay informed with our newsletter

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

Privacy policy
You may also like:

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 »

Ahead of Ulta Beauty ‘s 150% Gain Since Lockdown

Buying shares in a beauty retailer in March 2020 sounded like a crazy, stupid idea. Stock markets around the world were plunging at a record pace amid a global GDP crash resulting from government-enforced lockdowns. People were stockpiling necessities in preparations not to leave their homes in the foreseeable future. With COVID-19 cases rising everywhere,…

Read More »

More analyses