Worldline SA is a leading payments processing company in Europe. It is headquartered in France and trades on the Euronext Paris stock exchange. Similarly to other payments giants such as PayPal, Global Payments and Block, to name a few, Worldline fell victim to the recent crash in the sector, as well.
WLN reached an all-time high of over €85 a share in July, 2021. As of this writing, it trades for less than half of that at under €42.50. The good news is there is nothing terrible going on with the company that would warrant a 50+% decline. Worldline is a profitable fast-grower with a debt load that is quite manageable. This means the stock has gotten less risky as it dropped, not more.
In addition, there’s evidence that it might have also bottomed. The Elliott Wave chart below reveals a pattern that only occurs in the direction of the larger trend. In this case, it points up.
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The pattern is, of course, a five-wave impulse. It is labeled 1-2-3-4-5 in wave (1/A), where the five sub-waves of wave 3 are also visible. This means the recent dip from €47.25 to €38.87 must be wave (2/B) or at least a part of it. Whether it is over already or not is hard to tell. The point is that we can expect more upside in wave (3/C) unless the starting point of wave (1/A) at €31.82 gives up. It might turn out to be just a correction within the ongoing bear market. At least in the mid-term, however, targets above €50 seem within reach.
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