close icon

WPP Stock to Lose 30% from Current Levels

Like many others, communications services provider WPP Plc stock rebounded handsomely from its Financial crisis bottom at $22.35 a share in late-2008. By May 2015, the bulls had already lifted the price above the $120 mark. The problem is that unlike many other stocks, WPP’s went exactly nowhere during the past two years, locked in the area between $100 and $120. Let’s see if the chart below will help us find out why has the stock price been in no man’s land for so long and what we should expect from now on.

wpp stock elliott wave analysis

The weekly price chart of WPPGY stock shows that the wonder period between 2008 and 2015 has produced a textbook example of a five-wave impulse, which has been developing between the parallel lines of a trend channel. This actually explains it all, because one of the Elliott Wave Principle‘s main rules states that every impulse is followed by a three-wave correction in the other direction. That is what the lack of direction since 2015 stands for. However, unfortunately for WPP investors, we do not believe the stock is ready to resume its uptrend. Instead, it looks like the three-wave retracement is still in progress in the form of a regular flat correction, whose wave C down is yet to unfold.

If this is the correct count, WPP could lose about 30% of its current market capitalization, because wave C is usually the longest wave of flat corrections. In terms of price, the support area near $70 a share looks like a natural bearish target.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

MongoDB – Bearish Pattern Joins Nosebleed Valuation

MongoDB Inc. is a general purpose database platform developer and provider. The company was founded in 2007, but only came public ten years later – in 2017. During the following four years, the stock has risen from an IPO price of $33 to $515 a share as of last week. So, it is fair to…

Read More »

Pandora Does Things Right. Stock May Need a Breather

When we wrote our previous article on Danish jewelry maker Pandora in December, 2020, the stock was up over three-fold since March. That recovery from DKK 180 to DKK 651 didn’t not come out of the blue, though. It was the result of a bullish setup we managed to identify as early as July 2019.…

Read More »

Match ‘s SP500 Inclusion a Good Excuse to Reach $200

Match Group Inc. rose over 10% in post-market trading Friday following reports that it is going to be included in the S&P 500. The company, which owns Tinder, OkCupid and most other major dating apps in the U.S., has a market cap of over $41B. Despite the anticipated “summer of love”, though, this is not…

Read More »

Cameco Stock Seems to Have Finally Turned a Corner

Uranium spot prices are on the verge of breaking above $34/lb, up over 80% from the bottom of $18/lb reached in late-2016. Cameco, as one of the world’s top uranium producers, is now seeing its stock price rising in tandem. Yesterday, it closed at $19.16 after reaching $21.95 in June. We first covered Cameco in…

Read More »

A Fresh Look At Cigna ‘s Elliott Wave Super Cycle

In a case study article on Cigna, published in October, 2016, we examined how a fundamentally sound and undervalued stock can still drop nearly 90%. The reason for that crash didn’t lie in some company specific issue. Rather it happened to occur during the biggest financial crisis in 80 years. Nevertheless, we made the point…

Read More »

CBOE Takeover Rumor Lifts Stock to Elliott Wave Target

We first wrote about CBOE Global Markets less than eight months ago. The S&P 500 had already recouped all its COVID selloff losses and was hovering at new all-time highs. CBOE, in contrast, was still down 30% from its 2018 record, trading below $97 a share. For some reason, the market was ignoring the company’s…

Read More »

Ahead of Ulta Beauty ‘s 150% Gain Since Lockdown

Buying shares in a beauty retailer in March 2020 sounded like a crazy, stupid idea. Stock markets around the world were plunging at a record pace amid a global GDP crash resulting from government-enforced lockdowns. People were stockpiling necessities in preparations not to leave their homes in the foreseeable future. With COVID-19 cases rising everywhere,…

Read More »

More analyses