In today’s Financial Times, I read an interesting article by Paul Murphy that started off like this: “About 40 teams of sell-side analysts cover Tesco, the nation’s leading grocer, slavishly updating their forecasting models with every grain of fresh shopping info. Did any of those number crunchers fully anticipate the recent “strain” on Tesco’s profitability and the subsequent warning that profit growth in the coming year will be “minimal”? Not if the share price reaction is any guide: down 16 per cent on the day of the news” Here is the link That opening statement got me thinking. If we had looked at this chart a few weeks ago, what would have been our recommendation? Well, the chart is presented for you to study. Some of the non-believers might say that this is all after the fact. But our response to them is two fold. First, take a look at the hundreds of examples in this blog that anticipated prices before the event. Second, we are saying where this stock is headed – GBP 245, and we are giving some reasons for that. When an extended fifth wave finishes, we should look for a swift sell off to the second wave level within this fifth. Pass this on to your sell-side analysts, and certainly to your friends exposed to UK stocks.Maybe they haven’t heard of “Five Waves to Financial Fortune” yet! Enjoy!
Tesco (LSE) outlook using Elliott Wave Analysis
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