With а $350B market cap, Roche Holding is а pharmaceutical and diagnostics behemoth headquartered in Basel, Switzerland. Growth investors should look elsewhere, however, since the company’s sales have been hovering around 60B Swiss francs for years now. As a result, the stock hasn’t made much progress either and is trading at 2020 levels.
Currently at CHF 335 per share, it is up by 46% from its 2024 low, but still far below the all-time high of CHF 439 reached in 2022. Can the recovery continue despite Roche’s stagnating revenue, or should we brace for another notable decline? Unfortunately for the bulls, the Elliott Wave chart below favors the latter outcome.
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!
It shows that the near-50% plunge from CHF 439 to CHF 229 was a five-wave impulse pattern. We’ve marked it 1-2-3-4-5 in wave (A), where wave 5 is an ending diagonal. The theory states that a three-wave correction follows every impulse and that’s exactly what happened with Roche stock. A three-wave recovery labeled a-b-c pushed the stock up to CHF 334 this March.
It wasn’t the end of the correction, however, as the market decided to turn it into a W-X-Y double zigzag by drawing another a-b-c in wave Y. If this count is correct, wave ‘c’ of Y of (B) is on the verge of completion. The bulls might make it to the 61.8% Fibonacci resistance level near CHF 360, where a bearish reversal can be expected to take place. Once the bears take over in wave (C), downside targets below CHF 220 would make sense for Roche stock.
In our Elliott Wave PRO subscriptions we provide analyses of Bitcoin, Gold, Crude Oil, EURUSD, USDCAD, USDJPY and the S&P 500 every Sunday and Wednesday! Check them out now!
