VWS | A true warrior on cyclical dips, will it repeat?Vestas Wind Systems (VWS) has been a top performer in my long-term portfolio. I have noticed that the stock trades sharply negative when it reaches overbought levels (RSI basis), dropping for a few days thereafter until the RSI recharges / normalizes for the next leg up.
In the previous instances this has occurred, the stock took about 20 - 30 days to recover the losses. Not terrible when we consider it then usually goes on to gain ~30% to set new ATHs.
If this repeats, Trend-based Fib Extension gives us a 1925 DKK price target
I'm no expert in Elliot Waves but looking at smaller time frames puts us at C on the ABC correction pattern, suggesting the beginning of the new wave to come.
The company has its ER on the 10th of Feb. This could prove extremely important for validating the Bull case, as outlined above (and with the green pattern), or potentially setting the stock on course for a Head & Shoulders top (Bear case, red pattern).
Looking forward to hear from their management, Green energy is on a tear and should continue through 2021 and VWS will most definitely be a beneficiary if so.
Any thoughts?
Thanks and Good luck to all
(*This is not financial advice, for sake of discussion and illustrative purposes only*)
