Peugeot SA could lose one third

Should you be buying the recent pullback in Peugeot SA? Well, we do not think that is a good idea, because the dip is likely to extend. Many fundamental analysts think that this is an opportunity to go long in those shares, since Peugeot 308 has been crowned “Car of 2014” in the beginning of March. But we prefer looking at the charts. On the chart below is visible that Peugeot SA’s stocks have already drawn a complete impulse to the upside. According to the Elliott Wave Principle, after every impulse, a correction follows. Another guideline is that corrections tend to find support in the zone of the previous fourth wave, and more precisely at its terminus. If we apply this to the chart we can assume that wave (2)/(B) could end somewhere around 8.80. The distance from the last peak at 14.00 to 8.80 is 5.20 $ or 37%. That is why we suppose that Peugeot SA could lose one third of its value. Calculations suggest even greater loss. So, now is the time to do the opposite of buying – selling. The right moment to buy again should be at the end of wave C of (2)/(B). From then on, prices above 14.00 are to be expected.

peugeot SA

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