Medtronic (NYSE:) Elliott Wave Analysis Reveals Potential Stock Price Movement
Medtronic, a major player in medical technology, has seen its stock price drop from $136 to $82 recently. In this article, we will explore the Elliott Wave structure of this decline to uncover what the future might hold for investors.
The 49% crash in Medtronic stock can be interpreted as a five-wave impulse pattern, labeled as 1-2-3-4-5 in wave (A). The sub-waves of wave 3 and the triangle shape of wave 4 are also evident in this analysis.
According to Elliott Wave theory, a three-wave correction typically follows every impulse. It appears that the first two waves of this correction – A up and B down – have already occurred. If this count is accurate, wave C of (B) could push Medtronic stock towards the $100 level before a bearish wave (C) takes over, potentially driving the price below $69.
Furthermore, considering Medtronic’s modest growth rate, a price-to-free-cash-flow multiple of around 20 may seem overvalued. Therefore, investors should exercise caution not only based on the Elliott Wave chart analysis but also on the company’s valuation.
In summary, the Elliott Wave analysis suggests potential price movements for Medtronic stock, highlighting both bullish and bearish scenarios. Investors should pay attention to these insights and consider their implications for their investment decisions.
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