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CVR Energy Stock Confirms the Bullish Case

CVR Energy Stock Confirms the Bullish Case

It was September 12th, 2016, when we first wrote about CVR Energy stock. In that material we examined the stock’s long-term perspective from an Elliott Wave point of view and arrived to the conclusion that investors in the small-cap refiner should not feel discouraged from the recent price plunge, because its structure suggested it is just a correction of a larger uptrend. CVR Energy was trading below the $15 mark back then. Today, it is hovering around $20, after falling from as high as $25.91 reached in January, 2017. Once again, we are interested in the wave structure of the price action, so let’s take a look at the stock’s 4-hour chart below.
cvr energy stock elliott wave chart
The 4h chart allows us to see the development of CVR Energy stock since November, 2016. The rally from $12.04 to $25.91 is a textbook five-wave impulse, while the following decline to $17.57 could be seen as a simple A-B-C zig-zag correction with a triangle in the position of wave B. If this count is correct, the 5-3 Elliott Wave cycle is complete, which means the uptrend should be expected to resume from now on. The above-shown chart also helps us identify a specific invalidation level for the bullish scenario at $17.57. As long as this figure is intact, the bulls remain in charge. First targets near $30 a share should not be a problem.

Of course, when analyzing a particular stock, you have to take a look at it from all angles. Value Stock Invest provides fundamental analysis of CVR Energy Inc.

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