National Industries Group stock has come down a lot in the last several months. But we can decipher a clear five wave movement having been completed at the lows. The first leg of a 3-wave correction has already been completed, and the second leg is probably already over, or very near completion. Thus, I am recommending being on the alert to buy this stock for a move back to 830 area. Additional comments are on the chart.
2 Comments
hello ramki, For NIG, your saying its just 5 wave down corection than back to motive waves? i thought it should be A-B-C, we finished A at 210, finished B at around 500, and now in C, should ATLEAST go back to the bottom if not more.
Bufahad,
You are absolutely right. If one has labelled the selloff to early 2009 as a 5-waver, the correction should be a 3-wave affair (ideally labeled a/b/c). I have labeled it as 1/2/? for the present because we don’t know how this correction will shape up. The key point is the next big move will be UP, either as a 3rd wave within a zigzag, or as a C wave. The objective should be near the prior 4th wave, around 600 as a first step. I am sure you will agree that if we catch that move we would have played the markets correctly! Thanks for your post.