CVI Stock Keeps The Elliott Wave Rally Alive
EWM Interactive | Jun 29, 2019 07:11PM ET
The first time we wrote about CVR Energy was in September 2016. CVI stock was hovering below $15 a share at the time, following a crash from as high as $72 in 2013. Despite the terrible three years the bulls had to suffer through, our Elliott Wave analysis of CVI stock ‘s weekly chart convinced us this was a buying opportunity in disguise.
The reason for our optimism was the stock price path during the preceding eight years. There was a complete 5-3 wave cycle pointing north, labeled (1)-(2)-(3)-(4)-(5)-(a)-(b)-(c). The Elliott Wave theory postulates that the larger trend should be expected to resume in the direction of the five-wave sequence.
By July 2018, the share price was searching for direction near $37.50 already. It was time to take another look at the charts and the one below obliged.
A year ago, CVI stock was up almost 300% from the bottom in late-2016. More importantly, the recovery from $12 to $47.70 was a textbook five-wave impulse, labeled 1-2-3-4-5 in wave (1).
According to the theory, a three-wave correction follows every impulse. Hence, we though wave (2) was going to drag CVI stock to the support area of wave 4 near $25-$30 before the uptrend resumes in wave (3).
h2 No Top in Sight for CVI Stock/h2The updated chart below shows what has been going on with CVR Energy stock in the last year.
Wave (2) terminated at $30.46 on December 24th, 2018 and made way for wave (3) up. CVI stock reached an intraday high of $50.41 before closing a cent below $50 a share on Friday. Judging from the updated chart above, wave (3) to the north is well underway.
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CVR Energy may be up 48% in 2019 and 316% since October 2016, but the bull party seems far from over. A new all-time high beyond $72 is on the cards for CVI stock in the long-term as the company’s financial results improve and wave (3) up progresses.
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