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:

General Mills Stock Up by a Third in Three Months

General Mills stock plunged by 50% in the second half of 2018, following a decline from its July peak of $72.95. So, when the stock touched $36.42 in late-December most investors were not exactly optimistic about it, to put it mildly. On the other hand, the Elliott Wave analysis of GIS‘ daily price chart, published…

Read More »

Goldman Sachs to Find Elliott Wave Inspiration

A year ago, in March 2018, Goldman Sachs stock climbed to an all time high of over $275 per share. Unfortunately for the trend-followers, the rest of the year was nothing short of disastrous. GS dipped below $152 in December before closing the year at $167.05 for a total annual loss of 35.2%. The stock…

Read More »

MNST Stock Can Lose 25% From Current Levels

Despite the fact that 2018 was the best year in Monster Beverage Corp.‘s history in terms of earnings and revenue, MNST stock was another story. The share price reached an all-time high of $70.22 per share in January 2018, but eventually closed at $49.22 in December. A decline of almost 30%. Obviously, improvements in business…

Read More »

Elliott Wave Pattern to Send ORLY Stock Tumbling 20%

In our previous article we examined Advance Auto Parts stock through the prism of the Elliott Wave principle. Today, we are going to take a look at another company in the same industry – O’Reilly Automotive Inc. – whose ORLY stock exceeded $394 per share last month. But it hasn’t always been that easy for…

Read More »

AAP Stock Setting the Stage for a “Black Swan”?

The second half of 2017 was the worst time in many years for retail stocks in general. Everything from apparel, to sporting goods and grocery chains was under heavy selling pressure. The market didn’t spare auto parts retailers, as well. One of the victims was Advance Auto Parts – AAP stock. The stock crashed from…

Read More »

Horizon Pharma Stock Was Cut in Half. Then it Tripled

Horizon Pharma (NASDAQ:HZNP), headquartered in Dublin, Ireland, is a $4.7B biopharmaceutical company operating primarily in the United States. In July 2015, its stock was in the vicinity of $39.50. By May 2017, it was trading under $10 per share. We first examined Horizon Pharma stock’s prospects in September 2016, when it was searching for direction…

Read More »

OLED Stock can Halve if Rejected at Fibonacci Level

Universal Display (NASDAQ:OLED) stock is hot again. The share price is up by over 90% in less than two months, climbing from under $79 to above $151 since January 3rd. But is the bulls’ optimism warranted? Six months ago, on August 15th 2018, we examined OLED stock through the prism of the Elliott Wave principle.…

Read More »

More analyses