It’s been precisely three months since we wrote about Global Payments on May 11th, 2022. The stock was hovering around $117 a share, down from an all-time high of $221 in late-April, 2021. Despite being a top-quality business, GPN had suffered a 47% crash in just over a year. Based on the chart we shared with readers three months ago, however, we thought the bottom cannot be too far away. Take a look.
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The 4-hour chart revealed a complete five-wave impulse, labeled 1-2-3-4-5 in wave (a). According to the Elliott Wave theory, corrections consists of three waves. It looked like wave (b) was a triangle pattern, so it made sense to expect more weakness towards the $100 mark in wave (c). On the other hand, once a correction is over, the preceding trend resumes.
Global Payments Poised to Recover
Global Payments was clearly in an uptrend prior to May, 2021. So, we thought a bullish reversal can be expected as soon as wave (c) was over. Three months later now, it looks like the bottom is finally in.
It is better to mark wave (b) is a simple a-b-c zigzag now. Global Payments stock fell to $105.66 in mid-June in what is best counted as the fifth wave of an ending diagonal wave (c). The upper line of the pattern has been decisively breached, confirming the end of the correction and the resumption of the uptrend.
If this count is correct, much higher levels can be expected in Global Payments stock from now on. There will be pullbacks along the way, but overall the bulls remain in charge above $105.66. Besides, GPN also happens to be undervalued, giving us yet more reasons for optimism. You can read more about it and our other 17 stock positions in The EWM Interactive Stock Portfolio.
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