Rite Aid: 3 Drives Pattern & Harmonic Pullbacks
The last time I looked at this stock I had a bullish Bat Pattern on my radar, which resulted in a move back up to previous structure before continuing short. That movement down ended up being the 3rd drive in a bullish 3 Drives pattern (in yellow) and what I would expect is a minimal move back up to previous structure (orange arrows).
Typically when traders look at harmonic moves they only look at the extensions and not the retracements like in a normal AB=CD pattern. But when the market is moving harmonically it will often give us pullbacks that are equal moves to the previous pull backs. In this example a 3rd equal pullback would place us exactly at the previous structure level providing a great exit place for short term traders.
I don't follow the stock market as much as I used to so I'm not up to date on Rite Aid's fundamentals but I do know that it recently beat earnings projections, but also lowered it's earnings guidance for the second time this year. Regardless I'm still bullish this stock both as an investor and trader and this looks as good as a point as ever to enter.
Typically when traders look at harmonic moves they only look at the extensions and not the retracements like in a normal AB=CD pattern. But when the market is moving harmonically it will often give us pullbacks that are equal moves to the previous pull backs. In this example a 3rd equal pullback would place us exactly at the previous structure level providing a great exit place for short term traders.
I don't follow the stock market as much as I used to so I'm not up to date on Rite Aid's fundamentals but I do know that it recently beat earnings projections, but also lowered it's earnings guidance for the second time this year. Regardless I'm still bullish this stock both as an investor and trader and this looks as good as a point as ever to enter.
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