Flextronics International Ltd. stock has been in a strong uptrend since November 2008, climbing up by more than 10 figures from 1.30 to 11.47 so far. It is a rally quite impressive. Unfortunately, in the middle of this bull-trend there is a pattern, which carries a message to worry about.
Triangles precede the last movement of the sequence. In our case, we have a three-wave zig-zag correction with a triangle in the position of wave B. The final movement here should be wave C up, which is currently developing. It seems there are waves 4 and 5 of C left to be completed. This would mark the end of the whole recovery, which began some 6 years ago. Once it is all done, we will be expecting a strong decline, which would probably wipe out all of Flextronics’ gains. If this is the correct count, prices below 1.30 could be reached.
