A well deserved 10% price correction
I anticipate a price correction of approximately 10%, bringing the stock price down to around $18.80. Despite this expected short-term decline, my long-term outlook remains highly positive. The company continues to be a strong profit generator, with revenue growing at an impressive pace. Its newly launched products have been well-received, and there are numerous positive indicators for future growth on the horizon.
Returning to the anticipated 10% correction, it’s worth noting that following the Q2 report, the stock experienced a significant surge, breaking away from its established base trend. This is not an unusual occurrence; similar deviations have been observed in the past. I have highlighted these patterns with markers. In each case, after the price left the base trend, a consolidation phase followed, during which the stock corrected back to the Fibonacci 61.8% retracement level. Historically, all major upward movements have been followed by a retracement to this level.
I expect a similar scenario to play out in the coming weeks, with the price declining to around $18.80. At this point, I plan to purchase a substantial number of shares. Should the price briefly touch the base trendline, this would represent an exceptional buying opportunity—what I would consider a rare gift for long-term investors.
Returning to the anticipated 10% correction, it’s worth noting that following the Q2 report, the stock experienced a significant surge, breaking away from its established base trend. This is not an unusual occurrence; similar deviations have been observed in the past. I have highlighted these patterns with markers. In each case, after the price left the base trend, a consolidation phase followed, during which the stock corrected back to the Fibonacci 61.8% retracement level. Historically, all major upward movements have been followed by a retracement to this level.
I expect a similar scenario to play out in the coming weeks, with the price declining to around $18.80. At this point, I plan to purchase a substantial number of shares. Should the price briefly touch the base trendline, this would represent an exceptional buying opportunity—what I would consider a rare gift for long-term investors.
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