Parabolic Arc and Big Rally for Novatel MIFI Analysis

Aug 23, 2016: 12:18 PM CST

Parabolic Arc, textbook Elliott third wave, to-the-penny 50% Fibonacci.

These are just some of the factors at work for Novatel Wireless (MIFI) on the recent surge from $1.00 to $4.00 – a stellar move.

Let’s peel back the price and learn some lessons while we plan the next possible swing.

I’m highlighting the earlier simple Elliott Wave count through 2015 that ended above $6.50 on textbook negative momentum and volume divergences.

See our quick cheat-sheets and basic information/rules for Elliott Wave in our Educational Section.

Price collapsed then in a climactic “ABC” phase down to the bottom at $1.00 in early 2016.

From there a new five wave cycle is likely in motion – recently completing the impulsive and impressive 3rd wave – on the Weekly Chart.

Price surged toward – and now is logically falling down away from – the 50% Fibonacci Pivot at $3.86.

Focus on the current pivot – the 38.2% upward retracement – at $3.14.

The volume and momentum surge do suggest future likely higher highs to come after our current fourth wave pullback.

Speaking of fourth-wave pullbacks, let’s pinpoint our current Parabolic Arc Pattern on the Daily Chart:

A flat base developed through most of 2016 so far until the impulsive breakout – on higher volume and momentum – recently in August.

From there buyers (bulls) charged in to buy while bears (sellers) panicked to cover their outstanding short positions, adding fuel to a raging bullish fire.

Today’s action – into the 50% Fibonacci Target – is resulting in a huge sell-swing at the moment.

Price is breaking the Parabolic Arc with a volatile mini-crash today.

Let the crash shake out and focus on the $3.00 or $3.14 pivot.

Beneath that likely continues the liquidation (profit-taking) swing while a bounce could be a very aggressive buying opportunity.

Even if you don’t – or will never – trade MIFI, this chart gives us an exciting insight into the complex combinations of Elliott, Fibonacci, and classical price patterns.

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Corey Rosenbloom, CMT

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1 Comment

One Response to “Parabolic Arc and Big Rally for Novatel MIFI Analysis”

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