We start off today's Charts of the Day Video by looking at some recent Wave Set-ups that we added yesterday and today.
The first one is the Boston Scientific Corporation (BSX). It dropped down on Tuesday just shy of the .618 retracement, prompting us to post that this was a decent spot for a good risk/reward to attempt an entry on the long side.
The stock looks to have completed a leading diagonal off the low that was made in November for circle wave i of the larger Wave 1, with the pullback into the .618 retracement counting as circle wave ii.
Circle wave iii could then take it to a target of 40.58 before pulling back into the fourth wave. The fifth wave targets the 50% Fibonacci extension above 42 to complete wave 1 of the larger wave (3).
Next is Aon Plc (AON). It is also curling up following the post that was made yesterday (Tuesday).
The stock tested the upper end of support of wave 2 at the .382 retracement Tuesday, which could easily could have been completed, especially if the price starts to break out above the recent high at 208.63. It is a micro three waves up so far, so we need more confirmation that a bottom is in place.
If not, it does have room to pull back a little bit further, with a 50% retracement at 196 and then the .618 at 192 the next support levels and an opportunity to add to or fill out the position more if your are trading this one.
The final wave set-up that I posted on Tuesday was Avalara, Inc. (AVLR). The stock has been in an expanded flat in what looks like the minor degree wave 2. It also recently tagged a .382 retracement bounced up off that support enough to consider our circle wave c of 2 complete, but it might still get one more push lower.
Actually, the sub-waves for the c do seem to support that we could get a fifth down either to double bottom into that .382 or maybe stretch closer to the 50% retracement. Again, I would use that as an opportunity to add to positions if interested. Otherwise, a move back above the recent high at 166 favors a bottom already in place.
Other stocks featured in today's Charts of the Day video are RVMD, RACE, CERC, ACB, PTON, NFLX and XELA.