close icon

Horizon Pharma to Be Cut in Half

Horizon Pharma plc stock fell below $2 a share in March 2013. By July 2015, it was trading close to $39.50. What a ride, indeed. Unfortunately, the pharmaceutical company’s shareholders could not stay on cloud nine very long. Just three months later, in October 2015, Horizon Pharma crashed to $12.86. Currently hovering around the 18-dollar mark, investors are probably wondering if it is time to buy Horizon shares again. Let’s see if the Elliott Wave Principle can help us come up with an answer.
horizon pharma 4.9.16
The weekly log chart of the stock shows that the entire uptrend between March 2014 and July 2015 is a five-wave impulse. This means Horizon Pharma’s long term trend is headed north. But the Wave principle states that every impulse is followed by a three-wave correction in the other direction. In our opinion, that is the phase Horizon is trading in now. And it does not seem to be over yet. Instead, we believe the retracement’s third wave – (c) – is about to take the stock back to the price area between $9 and $7, where the support of wave (4) of the impulse is likely to allow the bulls to take the wheel again. If we compare this target zone to current prices, we see that Horizon Pharma might lose at least 50% of its market capitalization from now on. However, instead of losing hope, investors should take advantage of that, because once Horizon Pharma enters the $9-$7 area, the 5-3 wave cycle would be complete and a low-risk buying opportunity would arise.

“Invest at the point of maximum pessimism” -Sir John Templeton

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Can Facebook ‘s Privacy Concerns Fulfill this Setup?

Facebook ‘s privacy policies are under the microscope once again. Personal e-mails uncovered during an FTC investigation reveal Mark Zuckerberg knew of the company’s problematic privacy practices. Facebook stock still hasn’t been able to fully recover from the crash in the second half of 2018, which dragged the price from $218.62 down to $123.02. How…

Read More »

JPMorgan: Risk is High After 10 Years of Bull Market

Between March 2000 and March 2009, JPMorgan Chase & Co. investors saw their holdings’ value decline by almost 78% as the stock fell from over $67 to less than $15 a share. The next ten years, on the other hand, have been a wonder to behold. JPM stock rose like a phoenix from its ashes,…

Read More »

SERV Stock Sets the Stage for a 40% Tumble

ServiceMaster Global Holdings, founded in 1929, is a cleaning and pest control company headquartered in Memphis, Tennessee. The company went public in 2014 and has delivered very generous returns for its shareholders since. SERV stock took off from $11.54 in August 2014 and climbed to as high as $56.50 earlier this month. A 390% total…

Read More »

IAC Stock ‘s Future May Not Resemble its Past

InterActiveCorp. or IAC for short, is a $19 billion media and internet services company. It is the controlling shareholder of Match Group, which in turn operates Tinder – the online dating app. IAC stock was beaten down heavily during the Financial Crisis. In March 2009, IAC stock fell to $13.23 a share, down 92.3% from…

Read More »

Humana Stock Bulls Haven’t Lost the Battle Yet

Humana (NYSE:HUM) climbed to an all-time high of $356 in early November 2018, following a rally from as low as $18.57 in March 2009. In less than ten years, the company rewarded the patience of its investors with a total return of over 1820%, not counting dividends. Unfortunately, the last six months were nothing like…

Read More »

T Rowe Price Vulnerable After Fibonacci Encounter

Founded in 1937 and based in Baltimore, Maryland, T Rowe Price is one of the largest asset management companies in the world. At the end of Q1 2019 its assets under management stood at $1.11T. That is T for trillion. Besides, T Rowe Price is also a public company which is why it is of…

Read More »

Momo Inc. – The Tinder of China Looks Promising

Based in Beijing, China, Momo Inc. operates a mobile-based social and entertainment platform. The company was founded in 2011 and became public in late-2014. The Tinder of China, as Momo is often referred to, first turned a profit in 2015 and has been enjoying strong earnings and revenue growth in the last three years. Momo…

Read More »

More analyses