Tonight’s Stock Waves Charts of the Day video features two names that we haven't gone over in a video that have been recent Wave Setup additions and a couple of other stocks that we might be adding soon.
The first stock, COUP, is one we put back on the list after it filled out this larger, wider flat for the intermediate degree wave 2.
Longer-term, we're looking for the start of an intermediate degree wave 3. The 138.2% extension is at 1273, which is just a little bit shy of the yellow 123.6% extension at 1276. So that is the ideal longer-term target.
We did the Wave Setup, though, just looking at the first wave of this 3rd, targeting the 356 to 414 region.
Next is EGAN, which was a favorite of ours a while back. It couldn't hold higher support levels, and dropped into this deeper ABC for wave 2. But it has this really strong-looking reversal off of the hit of the 61.8%. If you zoom in at a smaller timeframe, we can get 5 waves up and a 3 wave retrace as the 1-2 start to our new minor degree wave 1 of wave (3).
The target for this wave 1 is the 17 to 19 region, maybe stretching up closer to 20. The target for the intermediate-degree wave (3), which could stretch out well into next summer, is the 60 to 71 region.
Let’s also take a look ARNA. This is one that came up last night that I said to keep on the radar. It is thinly traded. But off of this nice big ABC retrace as a wide expanded flat into the March 2020 low, we have another 5 waves up.
I think this needs to drop a little bit lower to 54.50. I would put a smaller risk amount because it is so thinly traded, and definitely not one to trade options on, but has very nice longer-term potential.
The next stock, ECL, was one that we looked at in a Webinar recently. We might be adding this as a Wave Setup soon. It has a good nested setup as a 1-2, 1-2. And then another 5 waves up and 3 wave retrace. Maybe this gets a little bit lower here. But it could easily be trying to turn the corner. Any move over 229, and I think this is starting to break out towards the 335 region.
View the video, which also includes analysis on PANW, SNAP, ENS, LITE, FPI, MIME and MVIS.