close icon

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 near the $18 mark. Here is what we found.

Horizon Pharma Elliott Wave analysis

According to our Elliott Wave analysis of HZNP’s weekly logarithmic chart, the rally from under $2 in March 2013 to $39.49 in July 2015 was a textbook five-wave impulse, labeled (1)-(2)-(3)-(4)-(5). This meant the following sharp selloff was probably part of a three-wave (a)-(b)-(c) correction, whose wave (c) down was still remaining.

No matter how good or bad the company’s fundamentals might have been, that wasn’t what we focused on two and a half years ago. The markets are not as rational as some people believe they are. Even the poorest company can go through the roof, and even the strongest can trade in the doldrums sometimes.

Ahead of Horizon Pharma ‘s Elliott Wave Rally

So instead of analyzing the company, we tried to understand the market’s attitude towards it. Back in September 2016, wave (c) was “about to take the stock back to the price area between $9 and $7” and complete the 5-3 wave cycle. The trend was then supposed to resume in the direction of the five-wave impulse. Instead of losing hope, we thought investors should take advantage of this low-risk buying opportunity.

Horizon Pharma climbed to $29.44 last week. The updated chart below visualizes its development since September 2016.

Horizon Pharma Tripled from the Lows in May 2017

Wave (c) dragged the stock down to $9.45. The touted reason for the crash to single digits was the company’s disappointing Q1 2017 report which also included a lowered guidance for the full year. In reality, the stage was set for a plunge in wave (c) long ago.

And just when the outlook was the bleakest, the bulls took the wheel and never looked back. Less than two years later, those who had the courage to buy Horizon Pharma stock below $10 a share multiplied their money by three.

The stock is still below its 2015 high, so we think the bulls’ chances of reaching $40 are quite good. How far can they go past this psychological mark is anyone’s guess at this point.

Did you like this analysis? Our Elliott Wave Video Course can teach you how to uncover the patterns yourself!



Stay informed with our newsletter

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

Privacy policy
You may also like:

Avoiding the 54% Crash in Brookfield Partners

When we last wrote about Brookfield Partners, the stock was hovering around $44 a share. That was on July 27th, 2019. Back then we though the price can reach $50, but instead of celebrating, the bulls should be getting ready to leave. The reason for our skepticism wasn’t some special insight into the company’s operations…

Read More »

Alphabet Stock To $1700 and… Below?

Similarly to the market at large, Alphabet stock felt the tremors caused by the coronavirus panic. The Google parent’s share price fell from $1531 to $1009 between February 19th and March 23rd. One of the biggest and strongest companies in the world lost 34% of its value in a little over a month. However, thanks…

Read More »

Sidestepping the 55% Crash in Steel Dynamics Stock

It’s been a little over four months since we wrote about Steel Dynamics. On January 16th, the stock was hovering around $33 a share. The price was down 37% from its May 2018 peak at $52.10. Yet, despite the reduced price, we thought investors would be better off avoiding the name. Our bearish opinion was…

Read More »

Omnicom Bears Face Strong Fibonacci Support

Yesterday, we talked about Interpublic and how Elliott Wave analysis warned us about its stock’s collapse two years in advance. Today, we are going to focus on Omnicom, which looked vulnerable to us in March 2018, as well. Omnicom rose from $20.09 to $89.66 between March 2009 and December 2016. The stock took full advantage…

Read More »

Two Years Ahead of Interpublic ‘s 55% Collapse

Interpublic and Omnicom used to be the giants of the advertising world. In the old economy, their competitive advantages seemed indestructible. Then, the Internet revolution came along and Facebook and Google created a lot of problems. However, their stocks were still making new highs until two years ago. Interpublic stock, for instance, was hovering around…

Read More »

Nestle Set to Complete a Pattern it Started in 2003

Nestle S.A. is one of the largest companies in the world and the biggest food and drink producer by revenue. The company is headquartered in Switzerland and went public in 2001. The stock’s all-time low was reached in March 2003, when it fell to CHF 23.32 a share. Seventeen years later now, Nestle stock is…

Read More »

Bulls to Lift Mondi Stock to New Highs

We first wrote about Mondi plc, the paper and packaging company, almost a year ago. On May 5th, 2019, the stock was hovering above 1700 pence per share. Despite being down 25% from its all-time high already, we thought it was too early for investors to buy the dip. Our pessimism was based not on…

Read More »

More analyses