Charter: Possible Bearish Inverted Triangle??the current formation is a potential Broadening, with 5 rallies, but I find a Broadening bottom strange in a current economic situation and in the bottoms are rare and not even big enough to reverse such a trend
in my opinion it is more likely that at least one more rally will occur and become an inverted triangle of bearish continuation
Chartercommunications
Charter Communications – Hidden Gem with Up To 85% Upside OpportIf you like this idea, please don’t forget to Boost it.
Fundamental Indicators:
Sector – Communication Services
US Business Cycle Stage – late cycle, when this sector is neutral
Revenue – consistently growing for the past 5 years, with 13% average annual rate
Profits – even more explosive growth, with 26% average annual rate
Net margin – decent 12% which has considerably increased since 2018
P/E – quite low with 13.6 ratio compared to S&P500 with 21 and Communication Services sector with 17.5
Liabilities - debt ratio is at 0.91 which is a little over the norm, Net Debt/ EBITDA is at 4.54 – no major problems with debt
Conclusion – great performance across all indicators apart from the debt ratio, which shouldn’t be a concern at this stage – stock likely to continue growing
Technical Analysis (Elliott Waves):
Main scenario of this idea suggests that we are still observing development of the global growth cycle which is currently at the stage of completing wave 5 of 5 (see higher timeframe graph)
The key elements of this scenario are Contracting Tringle of wave 4 that lasted between 2017 and 2019 which reflects accumulation phase, and the final fifth which is taking a complex shape
This final fifth wave is clearly shaping up by a choppy movement which indicates formation of an Ending Diagonal (see guidelines for Ending Diagonals below)
Waves 1 to 4 have already formed and wave 5 is just about to start
This may present a good long term opportunity with a target of $825 – up to 85% upside
This is a higher timeframe to reflect the full history of Charter Communications and to provide full wave count:
This is the link to the guidelines for Ending Diagonals
What do you think about Charter Communications and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves. And BOOST this idea if you like it.
Thanks
Charter Comm lost an earpiece. CHTRGoals 521, 504. Invalidation at 615.
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe