close icon

Buckle Stock Gains 40% in Two Months

Two months ago, on March 15th, we published an Elliott Wave analysis of The Buckle stock (NYSE:BKE), saying that “the stage is set for a surge.” At the time of writing, the stock was barely holding above the $18 mark after a decline of nearly 30%. But instead of joining the bears, we thought that was a buying opportunity, because of the perfect 5-3 wave cycle we found on the 4-hour chart of the stock shown below.

buckle stock elliott wave analysis update
A five-wave impulse, followed by a W-X-Y double zigzag correction meant the price should be expected to move in the direction of the impulsive sequence. In addition, the 61.8% Fibonacci level could be relied on to act as support and discourage the bears. The very next day, on March 16th, The Buckle reported its financial results for the full fiscal 2018. Obviously, investors liked what they saw, because two months later Buckle stock is hovering around $25 a share.
buckle stock elliott wave update
The Buckle stock jumped from $17.85 to $25.05 for a total gain of 40.3%, while the S&P 500 has returned -1.3% during the same period. Judging from the updated chart above, the bulls are not done yet. It looks like wave 3 of (3) is going to lift the share price even higher. The company is expected to report earnings for the first quarter of fiscal 2019 on May 25th. If this count is correct, the market is already anticipating good news from this apparel retailer. $30 a share sounds like a reasonable first target from now on.

Disclosure: The author holds a long position in BKE stock.



Stay informed with our newsletter

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

Privacy policy
You may also like:

LKQ Shows How An Elliott Wave Cycle Should Look

LKQ Corporation is an auto parts provider, founded in 1998 and headquartered in Chicago, IL. Investors who bought LKQ stock at the IPO price in 2003 and held until 2018 would have multiplied their money by almost 25. On the other hand, those who bought in January 2018 are still under water as the stock…

Read More »

Qualys Stock to Fall Another 40% as Bears Persist

Qualys Inc., founded in 1999 and headquartered in Foster City, CA, provides cloud security and compliance solutions. Given the fast-growing sector the company operates in, it is no surprise that its stock has also been quite hot. At least until recently. Qualys went public at $12 a share in September 2012. Despite a couple of…

Read More »

Electronic Arts Can Lose 50% in Elliott Wave Correction

Electronic Arts hasn’t been able to reach a new all-time high since July 2018, when it climbed to $151.26. However, the stock came close to that last month after the coronavirus panic in March was quickly forgotten. Currently near $127 a share, Electronic Arts holds a rather high valuation at 29 times its expected fiscal…

Read More »

Buffett’s DaVita Stock Looks Like a Bull Trap

Formerly known as DaVita HealthCare Partners Inc., DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease. It was founded in 1994 and went public a year later. As of this writing DaVita’s market cap is close to $10.7 billion. The interesting part is that it is…

Read More »

London Stock Exchange Stock Needs a Breather

Stock exchanges are the places where the shares of publicly traded companies change hands. But sometimes we forget that the exchanges themselves are operated by a company, as well. Usually, those companies are also public with their stocks trading on the exchange, too. That is exactly the case with the London Stock Exchange Group plc.…

Read More »

Yum! Stock to Form a Base Near $75 a Share

The coronavirus selloff hit the restaurant industry hard. With stores closing to prevent the virus from spreading, the stocks of McDonald’s, Starbucks, Dunkin and the like all came crashing down. Yum! Brands wasn’t spared either. YUM stock has been losing ground since the summer of 2019, but it was the COVID-19 crisis that really scared…

Read More »

Intel ‘s Troubles Fit in its Elliott Wave Correction

2020 is shaping up as a year to forget for Intel shareholders. The stock is down over 20% year-to-date. First, the coronavirus selloff caused a 35% plunge down to less than $44 a share. And just when it seemed INTC was recovering, the company announced it will delay its 7nm products until late 2022 or…

Read More »

More analyses