RECOMMENDATION : BUY AT CMP
Target - 223, Stop: 184, Time-T+4 days
Rationale :
Elliott Perspective : As the labelling in the above diagram suggests wave 1 and wave 2 have played out since the 08-09 lows. A mere 23.6 % correction and a C wave failure in wave 2 are embellishments of strength for the stock. Since the wave 1 of wave 3 has not been very powerful, it is only fair to assume a blowoff in 3 of 3.
Traditional Perspective : After breaking out of the sideways trading range the stock has pulled back. The gradient of this pullback highlights the sanctity of the breakout.
Risk Management : A stop below the low of wave 2 of wave 3 (i.e 184) can be used. If 184 breaks, the labelling would be rendered incorrect.
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