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.
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.