close icon

Pandora Stock Shining Bright Again Despite Pandemic

We last wrote about Pandora A/S in late-July, 2019. The stock was hovering around DKK 260 after a long and painful decline from over DKK 1000 in 2016. But business-wise, the Danish jewelry-maker was taking the right steps to fix things and straighten the ship.

Program NOW was initiated in 2019 to cut costs and improve in-store and online experience. Alexander Lacik was appointed CEO a few months later to help with the turnaround and brand relaunch. Shortly after that we took a look at Pandora’s stock price chart…

Pandora Completes Negative Phase of Elliott Wave cycle

…and found an Elliott Wave cycle there. The pattern had been in progress since 2011. There was a clear impulsive rally, labeled (1)-(2)-(3)-(4)-(5), where the five sub-waves of wave (3) were also visible. But since the theory states that a three-wave correction follows every impulse, Pandora’s surge couldn’t possibly continue.

Ahead of Pandora ‘s Successful Turnaround with Elliott Wave

The stock reflected the deteriorating fundamentals of the business and by the time of our previous article was trading at DKK 261. The correction looked like a complete (a)-(b)-(c) zigzag, which made us think the bulls can return right away. “Not so fast”, said COVID-19.

Pandora jumps 260% in nine months since March 2020

Needless to say, when we made that analysis we had no idea that a global coronavirus pandemic was on its way. The February-March selloff interrupted Pandora’s recovery and caused a new low of DKK 180. It changed the structure of the correction from a simple (a)-(b)-(c) to a triple (w)-(x)-(y)-(x)-(z) zigzag.

It did not, however, change our long-term bullish outlook on Pandora. And since the company was financially stable and we don’t use leverage to invest in stocks, the COVID drop didn’t matter that much. The recovery might have been postponed but not cancelled.

Pandora stock closed at DKK 653 today, up 150% since our July 30, 2019 article. Investors who had the courage and resources to buy in March did even better. Of course, it is highly unlikely that the post-March surge can continue in a straight line. There will be retracements along the way. As long as the fundamentals and Elliott Wave analysis continue to confirm the bullish thesis, we will view these as buying opportunities.

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:

Stock Split Did Not Change The Trade Desk ‘s Pattern

Ten months ago, in March, 2021, we wrote that The Trade Desk stock can “exceed $1000, but not by much.” Shares were hovering around $750 at the time and, in our opinion, were extremely overvalued. Nevertheless, our Elliott Wave analysis suggested more upside ahead, before the bulls gave up. On June 17th, the company executed…

Read More »

SNAP ‘s Gains Disappear Just as Quickly as Messages

Snapchat is famous for deleting all messages sent over the platform immediately after they’ve been viewed by the recipient. And while this feature is appreciated by the company’s core demographic, investors hardly like it when their SNAP stock gains do the same. Unfortunately, that is exactly what has been happening since late-September. SNAP stock is…

Read More »

Etsy Stock Rose and Fell as Elliott Wave Predicted

Sales at online marketplace giant Etsy are on track for a 33% gain in 2021 and are expected to add at least 20% more in 2022. The company is growing, profitable and financially stable, yet the stock is down 46% from its November 2021 record of $307.75 a share. Fortunately, Etsy ‘s crash is not…

Read More »

Lululemon Stock – Ahead of the Disappointment

Even though the stock recouped most of yesterday’s losses, Lululemon still disappointed investors with its Q421 guidance. Despite causing a milder illness, the Omicron variant is nevertheless taking its toll on the company’s sales. However, shares have been dropping for quite some time now. The stock is down 28% from its $486 all-time high reached…

Read More »

The Top Might Be In for OneWater Marine Stock

Contrary to common sense, the tough times brought by the pandemic caused a dramatic demand for luxury items. Everything from jewelry to mansions experienced a huge surge in popularity. Recreational boats were no exception. In this respect, few companies benefitted more from the post-pandemic boom than OneWater Marine Inc. The company is a fast-growing premium…

Read More »

Hess Corp. to Enjoy the Looming Energy Deficit

The world has finally awakened to the looming climate change catastrophe and is suddenly rushing its way towards renewables. New oil and gas exploration projects are hardly being approved, while the world is still heavily-dependent on fossil fuels. This threatens to create a huge supply-demand imbalance, which can result (already results?) in much higher energy…

Read More »

Okta Stock Likely to Halve Once It Exceeds $300

Founded in 2009, Okta Inc. is an identity management platform provider for businesses. Its products include API access management, single sign-on, multi factor authentication, user management and lifecycle management. It all sounds very impressive and the company’s $36B market cap makes it sound even more so. Until one finds out that Okta is still a…

Read More »

More analyses