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.