close icon

NetEnt stock Looking for an Elliott Wave Bottom

NetEnt AB, based in Stockholm, Sweden, is a leading global provider of digital distributed games and gaming systems to online casino operators. It is also a good example of a company, whose shareholders became a victim of the market’s vicissitudes.

NetEnt stock reached an all-time high of SEK 88.53 on June 1st, 2016. Less than three years later, it is barely holding above SEK 30. One might think this 65% crash was caused by a sharp deterioration in the company’s fundamentals – a giant pile of debt or mounting losses, for example.

Imagine our surprise when we found out NetEnt’s profits haven’t stopped growing and that it is actually debt-free. So, if we cannot rely on the fundamental picture to tell us where the stock is headed next, let’s use an alternative method of analysis instead.

NetEnt stock Elliott wave forecast

The daily chart of NetEnt stock allows us to put the stock crash into an Elliott Wave perspective. As can be seen, the market has drawn a textbook five-wave impulse, labeled (1)-(2)-(3)-(4)-(5). Wave (1) is an expanding leading diagonal and the sub-waves of wave (3) are clearly visible, as well.

In addition, the market apparently took the guideline of alternation into account. Wave (2) is a simple a-b-c zigzag, while wave (4) is a triangle correction. If this count is correct, NetEnt stock is now in the last phase – wave (5) – of this impulsive decline.

NetEnt Setting the Stage for a Rally

According to the Elliott Wave theory, a three-wave retracement in the opposite direction follows every impulse. This means that once wave (5) is over, a bullish reversal can be expected. The MACD indicator supports the positive outlook with a strong bullish divergence between waves (3) and (5).

The anticipated recovery has the potential to lift NetEnt stock to the resistance area of wave (4) near SEK 60. In other words, a 100% rally seems to be around the corner.

Did you like this analysis? Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

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

Privacy policy
You may also like:

Bristol-Myers Stock Pattern Triggers a 37% Surge

Bristol-Myers Squibb and Celgene are expected to merge into a single company before the end of the year. The deal will create the fifth largest pharmaceutical company in the world with sales of approximately $42 billion in 2019. Bristol-Myers fell sharply after the deal was announced in early-January. In late-April, the stock was still in…

Read More »

Home Capital: Third Wave Lifts Stock 140% in 2019

Home Capital Group is up 17.4% in Toronto today following the company’s third quarter financial report. The mortgage lender beat analysts’ earnings expectations and delivered improvements in other areas, too. In total, HCG is up ~140% in 2019. But things didn’t look so rosy at the beginning of the year. The stock was hovering in…

Read More »

Walgreens: Did the Market Foresee that KKR Offer?

Anyone who’s been in Elliott Wave analysis long enough has noticed how often some external factor “makes the price move” in the direction the analysis had identified much earlier. We’ve seen it happening in crypto, we’ve seen in happening in stock indices. Now, it happened with Walgreens stock. Walgreens jumped on November 5th after CNBC…

Read More »

SERV Stock Gave a Warning Before Crashing 40%

The last three weeks have been tough on ServiceMaster shareholders. SERV stock was hovering around $56 a share as October went into its final third. But when the company announced its preliminary Q3 results on October 22nd, all hell broke loose. Apparently, Wall Street didn’t like what it saw, which resulted in a swift and…

Read More »

Expedia Disappointed. Elliott Wave Analysis Did Not

Expedia stock is down 25% today after the company’s Q3 results missed expectations. GAAP EPS fell 57 cents short of analysts’ estimates. The revenue figure was anticipated to be $10 million higher than reported, as well. On top of that, Expedia cut its full-year guidance which annoyed Wall Street even more. That is the official…

Read More »

SEIC Stock Can Lose Half its Value in a Recession

SEI Investments provides investment management, processing and platforms for private banks, institutional investors and investment advisors and managers. With a market cap of roughly $9.4 billion, the company is in the mid-cap category, which is generally thought to offer some of the best growth potential opportunities. But is SEIC stock a good choice around $62…

Read More »

DexCom ‘s Wall Street Darling Status is in Danger

In previous articles, we’ve discussed numerous stocks, which brought their investors great returns in the past decade. Today’s material will focus on one that beats them all. DexCom – a medical device company, headquartered in San Diego, California. In November 2008, during the throes of the Financial Crisis, DXCM stock plunged to as low as…

Read More »

More analyses