C.R.Bard Inc has way to go South, says Elliott Waves

C.R.Bard, Inc designs, manufactures, packages, distributes and sell medical, surgical, diagnostic and patient care devices. Its market cap is $10.48 billion and the stock posted its 52-week high at $150.13 on April Fool’s day. Why are we looking at this stock? It is because it has the distinction of being the top loser on the S&P index yesterday! Elliot Wave analysis of C.R.Bard Inc shows some interesting patterns. As you know, Elliott Wave Principle holds that once a five wave move is completed in an upward direction, we should look out for a large move on the opposite direction. Elliott Wave analysts look for Fibonacci relationships between the various waves in order to validate their conclusions. If you take a look at the first chart below, we can see that wave 5 finished exactly at a 61.8% measure of the distance from the starting point 0 to the end of wave 3. This has been covered in detail in my Elliott Wave book “Five Waves to Financial Freedom”.

Elliott Wave Theory further holds that each of the three impulse waves that are seen in the broad five wave rally will have its own subset of five waves. You can clearly observe this phenomenon from the next Elliott Wave chart. Interestingly, you can see that not only the third wave is made up of five sub waves, but even the third wave within the third wave has its own minor five waves. Moreover, sub wave v inside the third wave finished exactly at a Fibonacci measure (50%) of the distance from 0 to iii.

The final chart shows how we can figure out some targets for the next leg of the large correction that is expected. We measure 138.2% of the distance traveled by the first move down and project that distance from the top of wave B. The target for the C wave is thus around 125.75. It is important to understand that no move will be a straight line move. However, generally speaking, C waves tend to travel fast and so anyone who is still nursing a long position is well advised to get out of that position on any recovery.

The charts and analyses posted in this blog are for educational purposes, and supplement what you learnt in my book FWTFF. I have another website, www.wavetimes.net which offers serious traders an opportunity to learn how to trade the market using my techniques.

————
27 June 2014 update.

A member asked about the internal waves of the C wave.Take a look at the chart below. We did not reach 125.75, but did manage to get to 135.80 after first recovering to 142.37. That was a decent enough move for most people. THe key point is when we have a trade, we need to watch how the market is moving. Elliott Waves is not a black box. When the minor 4th wave reached 142.37 and it started coming off, we have to get ready for the end of the move. I have explained in FWTFF how to compute these end points. One should lighten up the exposures starting from the earliest target. I use Elliott Waves to trade, not to make predictions. Sure, the target was 125.75, but if I wait indefinitely for that target to be reached even when new information is being presented, it will be an incorrect application of the wave principle. Enjoy.

End of 5 waves in CRBard
End of 5 waves in CRBard

Elliott Wave Rules Explained



15 Comments

  • Khalid

    Hi ,
    My residence in United Arab Emirates.
    Wanted to know how to buy your Elliott Wave book “Five Waves to Financial Freedom”
    as the book is not available in infibeam website nor I can purchase it in Amazon & Barnes –
    not allowed for sale in Middle East

    Note : I have purchased the book thru infibeam earlier but I have lost my email account which was linked with Adobe,for that I need to buy again.
    Thanks

    • Khalid, I am sorry to hear of this loss. Why dont you try the following. Get a friend to open an AMAZON.Com account in the US with your name but his address. Associate your own credit card with that account. Later on you can change the password so that you dont have to worry about your friend. After that, you can simply log in to your new Amazon.com account and order any book you want, including FWTFF. The book will arrive in the UAE within seconds! Good luck.

      • Rhema

        Hey Ramki am a follower of your blog. I just bought your book in Amazon. Thanks for such a wonderful detailed explanation. Do you mentor or give personal mentorship. Thanks.

        • Hi Rhema, Thank you for your comments. Because of my full time job, I am currently not offering individual lessons. However, I do offer an occasional workshop or seminar at different parts of the world. Take a look at wave times.net as well.

          • Sunny

            Mr Ramki,

            As you mentioned occasional seminar is conducted by you.. Do you have a direct link which list future or upcoming seminars that are scheduled on list of venues that can be checked.?

            what are the nominal fee for attending the seminar.. and list of topics /contents covered in the seminar…

            Please advise.

            Regards

            Sunny

          • Sunny, At present my seminars are sponsored by institutions. If a group of 20 people could get together, then they could reach out to me via their representative on my personal email that is available on the wavetimes.net website.

  • Sunny

    Mr Ramki,

    Is the book only be available via cloud PC kindle. OR is it available in .PDF format?

    Regards,

    Sunny

    • Hi Sunny, The book is available as a Kindle book from Amazon and as Nook book from Barnes & Noble. The other seller, Infibeam, seem to be having a problem!

      • Sunny

        Ramki,
        Thanks for the brief reply. May be it wasn’t direct answer. Should I assume the pdf download version is available for the book. either via amazon or else.
        Again The idea is I like to download pdf version of book on my PC for later offline reading whenever I can..rather than reading in online amazon cloud…
        Is this possible?

        Regards

        Sunny

        • Sunny, The book has numerous hyperlinks which connect to relevant examples on my blog. This would be lost if you had a paper version. At some point in the future, I will publish a paper edition and this will be well publicized via the blog.

  • Ally

    Good Afternoon Ramki

    Many thanks for your fantastic book. As someone who has recently become an Exclusive Member I look forward to your future communications. My main trading strategy has been Median Line Analysis for some time but I am very excited about the potential for EW success. I realise that you are busy but could you please elaborate on the internal wave counts for the forming Wave C down towards the 125.75 target level above. Many Thanks. Al

    • Hi Ally, Thanks for writing. I have posted a chart on CRBard as an update for your guide. Yes, I am short on spare time hence the delay in response. I am not aware of Median Line Analysis. My suggestion is to stick to the one method that works for you. EW works very well for me, and I believe it is the only tool that dynamically allows us to adjust our thinking as the market unfolds. Good luck.

  • Abhishek Mittal

    Hi sir,
    First of all i would like to thank u for ur amazing work on FTWFF it was a great help to me indeed.
    I got a doubt when we are in a corrective phase what is the most ideal confirmation of itz completion.I mean many a times i burnt my finger anticipating an ABC instead of a minor 1-2-3 .lyk i went long wave 3 bottom thinking it to be c initially wave 4 rewarded btw wave 5 (minor)takes out my stop orders..
    Could u kindly help me out with this problem..Thank u!!

    • Abhishek, Try not to trade the short term until you become very good at Elliott Waves. What you describe is a challenge for many people. This happens because they enter a trade in the middle of a cycle. Read the book again keeping in mind what I just said and maybe things will clear up a little.

      • Abhishek Mittal

        thank you for ur response sir..!!got one more question.Do u suggest using some indicator so as to add confirmatory signals to our wave counts..??

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