$JSEMTH - Motus Holdings: Share Price Will Not Go Up Forever!
One thing is constant about markets, whether indices or single stocks, and that is bull trends will be followed by bear trends or periods of consolidation.
Motus has had a sterling bull run since bottoming in April 2020 at an all time low of R23,00 and recently hit an all time high of R136,00.
Applying the Elliott Wave Principle reveals that this bull trend has matured and buying momentum is waning and a trend reversal is imminent.
Based on this wave count, the share is in the (v)th wave of the 5th wave of a higher degree (1)st wave.
Wave 5 in this case is tracing out an ending diagonal pattern (aka rising wedge) which is a terminal pattern.
The MACD indicator clearly shows divergence, indicating that buying momentum is weak.
It is possible that wave (v) can make a new all time high but i would not be jumping into Motus as this stage of the trend.
Motus has had a sterling bull run since bottoming in April 2020 at an all time low of R23,00 and recently hit an all time high of R136,00.
Applying the Elliott Wave Principle reveals that this bull trend has matured and buying momentum is waning and a trend reversal is imminent.
Based on this wave count, the share is in the (v)th wave of the 5th wave of a higher degree (1)st wave.
Wave 5 in this case is tracing out an ending diagonal pattern (aka rising wedge) which is a terminal pattern.
The MACD indicator clearly shows divergence, indicating that buying momentum is weak.
It is possible that wave (v) can make a new all time high but i would not be jumping into Motus as this stage of the trend.
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