Four and a half months ago, on March 15th 2014, we published a forecast of MEDIASET, called “MEDIASET to reach one last new top”. All we said in that article is limited to this: “On the daily chart of MEDIASET we could see one of the clearest impulses. It shows that wave (5) looks like an unfinished ending diagonal. That is why we expect MEDIASET to reach one last new top in wave 5 of (5), before turning down for a natural three-wave correction. The final peak should be somewhere in the 4.50 area. The following A-B-C decline could find support around the bottom of the previous wave (4) – near 2.80.” These explanations were accompanied by the chart given below.
There has been a lot of price action during the last four and a half months since that forecast. Probably there have been a lot of news and reports concerning MEDIASET, but as you should know, we do not need such information and we do not follow it. The only thing we use and apply is The Elliott Wave Principle, discovered and developed by R.N. Elliott some 80 years ago. The updated chart of MEDIASET will convince you, that despite its old age, the forecasting power of this method is remarkable.
As visible, the ending diagonal in wave (5) evolved into an expanding one, but this did not change the count in any way. The “last new top” led prices as high as 4.44. Then the expected decline brought MEDIASET down to 2.90 as of today. The only difference is that instead of a simple A-B-C zig-zag, the retracement formed a double W-X-Y zig-zag. Nevertheless, the accuracy of this forecast is simply amazing.
