Today's pullback was orderly and the wave tried not once but twice to fall back into the range of wave 1. Each time the buyers stepped in forming a small double bottom and eventually a parallel channel.
Because of these EW related signals I model that the next move to be up as shown below. At that point I will take short term profits because many will view it as a bearish gap fill. Then I will wait to see if the pullback is a nice 3 wave deal to the level of the prior 4th ($1.50) and if so then it will form an inclining double bottom which will be a strong indicator that 3 or C is next with target price well over $2.
The model will bust if this falls below the orange support shelf before first putting in red 5.
None of this has to do with fundamentals. You don't know what the real fundamentals behind stock movements are any more than I do any more than anyone on this planet does. Those who cannot see this are deluding themselves. All of it is just herd movements and EW is just model predictions based on what the herd has recently done.
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