First Horizon Stock Looks Ready To Jump
EWM Interactive | Sep 18, 2016 07:36AM ET
First Horizon National Corporation (NYSE:FHN), headquartered in Memphis, Tennessee, is a large bank holding company, founded in 1864, during the American Civil War. But as the last stock market crash demonstrated, even companies with such a long history are not immune to the laws of the market cycle.
Between February 2007 and July 2008, First Horizon stock plunged from as high as $37.85 to as low as $3.77. To say that it took a hard hit would be an understatement. However, the company survived that recession, too, and its stock is currently trading slightly above the $15 mark.
But if we want to see where it is most likely headed to from now on, we need to see how it has been developing decades before the 2007-2008 crash. First Horizon’s monthly log chart will come in handy.
In late 1975, the stock was hovering near 50 cents a share. Almost thirty years later, in March 2004, the stock reached an all-time high of $40.53. But to us, the most important thing is the wave structure of this phenomenal bull market.
As the chart shows, First Horizon’s uptrend took the shape of a clear five-wave impulse. According to the Elliott Wave Principle, every impulse is followed by a correction in the opposite direction. So, it is not at all surprising that the stock lost over 90% by July 2008. If this is the correct count, the 5-3 wave cycle is complete and First Horizon stock could be expected to resume its uptrend. In the very long-term, this means that the bulls should be strong enough to exceed $40.53 and reach a new all-time high. This is what Elliott Wave analysts mean, when they mention “undervalued”.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.