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:

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