When we last wrote about Pandora in early-May, 2024, we not only showed readers how Elliott Wave analysis helped us to predict that the stock would double, but also that its bull run was likely approaching its limits. While the Danish jewelry-maker was trading around DKK 1150 a share, we thought that a new record above DKK 1200 made sense, but a bearish reversal would then trigger a decline back to DKK 800.
While we do like the company’s business fundamentals, that prediction had nothing to do with them. Instead, it was based on the 4-hour chart below and its Elliott Wave implications.
It revealed an almost complete five-wave impulse pattern to the upside, marked I-II-III-IV-V, whose fifth wave had yet to fully develop. According to the theory, a three-wave correction follows every impulse, hence our doubt that Pandora was worth the risk above DKK 1200. The updated chart below shows how the situation unfolded.
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The first thing to notice is that wave V wasn’t actually in progress back then. Instead, wave IV took its time to evolve into an a-b-c running flat correction, before finally allowing the bulls to return. Wave V, in turn, not only reached the DKK 1200 mark, but also went for DKK 1400 in early-2025. Unfortunately for Pandora shareholders, this didn’t cancel the Elliott Wave rule stating that a correction follows every impulse.
By April 7th, the stock had fallen to DKK 805, down 43% in just over two months. That crash is a five-wave impulse, marked 1-2-3-4-5, which stands for wave A of a bigger A-B-C zigzag correction. Wave B up to DKK 1226 has been followed by an additional selloff to DKK 835 so far. Another impulse is supposed to occur in wave C. Its wave 5 is likely to touch the 61.8% Fibonacci support, where the negative phase of the cycle often ends. If this count is correct, a bullish reversal can be expected in Pandora stock near DKK 750.
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