Pandora Stock to Find Bottom Near Fibonacci Support

Bullish   

The last time we wrote about Danish jewelry maker Pandora was in mid-February, 2022. The company had just reported its highest annual sales ever. Yet, the stock was down 30% since its November 2021 peak in a corrective pullback Elliott Wave analysis had helped us predict back in September. The bad news was that the correction didn’t seem to be complete. So we thought the next wave of selling can “drag the stock below DKK 600.” Since there was absolutely nothing wrong with the underlying business, our pessimism was only rooted in the chart below.

Elliott Wave correction in progress in Pandora stock

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!

That was four months ago. The drop from DKK 950 to DKK 667 simply looked too shallow in relation to the preceding five-wave impulse. So it made sense for the bears to drag the price lower before giving up. And drag it they did. Not only did Pandora stock fall bellow DKK 600, but it pierced DKK 500, as well.

Pandora Bears Seem to be Getting Tired

On the other hand, the theory states that the prior uptrend is supposed to resume once wave (2) is over. Things brings us to the logical question of what is left of it? Not much, according to the updated chart below. The wave structure inspires a better idea now, so we’ve come up with a slightly different labeling. Take a look.

Pandora stock searching for a Fibonacci bottom

The decline from DKK 950 can best be seen as a W-X-Y double zigzag, where both waves W and Y are simple a-b-c zigzags. Wave ‘c’ of Y looks like an ending diagonal pattern, whose wave ‘v’ should soon complete the entire correction. If this count is correct, we can expect one last dip towards DKK 470, followed by a bullish reversal for the start of wave (3) up. The fact that the price has entered the 61.8% Fibonacci support area only increases the odds in the bulls’ favor. Long-term targets above DKK 1000 per share seem reasonable.

Furthermore, one doesn’t have to rely solely on the charts when it comes to Pandora stock. Pandora the company has never been in a better shape and management guidance calls for DKK 60 in 2023 EPS. This means that at DKK 500 the stock trades at a P/E ratio below 8.5. So, in addition to the bullish Elliott Wave setup, it turns out we can rely on a strong and undervalued business, as well.

Disclosure: Pandora A/S is part of the EWM Interactive Stock Portfolio. There are 17 other positions in it that have yet to realize their full potential, as well. Download the portfolio and read about them now!

New to Elliott Wave?

Elliott Wave principle offers a completely new understanding of what the nature of the markets is, what drives them and what can be derived from their movement. This course is for those of you, who have been looking for an honest Elliott Wave guide, describing the method’s advantages over other trading tools, but not hiding its weaknesses.

Check Video Course    or     Check our eBook


See our Video Course
or check our eBook

Last year over 60k readers trusted EWM Interactive to help them in their trading decisions.

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- Xavier N.

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- J. Kotzee

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- C. Montgomery

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- C. Montgomery