PCOR Analysis with Elliott Wave

I am still continuing with my Charts and Technical Analysis (TA) self-study, and after reading Ms. Guillen Rocher's post about FNI, I wanted to try my hand using Elliot Wave.

You can read Ms. Rocher's post about FNI here: The Story of FNI-ipit (Simple Thesis)

From what I've read in stockcharts.com, the basic Elliott Wave sequence consists of Waves 1, 2, 3, 4, 5, A, B, C. You can read up on it here: Elliott Wave - Stockharts.com

Let's take a look at PCOR's chart. I tried doing the count with the daily time frame but wasn't successful. I switched it to weekly time frame and I think I have the sequence plotted. FYI, Although I have heard of the Elliott Wave pattern before, I never really bothered to use it in my chart analysis until now, so please bear with me. This is not a recommendation to buy or sell PCOR. This is to record my continued studies in using TA when analyzing charts.

Below is a screenshot of the PCOR chart back in late 2001. The waves are marked with text bubbles. (click on the photo to enlarge)



Based on the Guidelines shown in Stockcharts.com, one of the guideline states:

Guideline 2: The forms for Wave 2 and Wave 4 will alternate. If Wave 2 is a sharp correction, Wave 4 will be a flat correction. If Wave 2 is flat, Wave 4 will be sharp.

Also, after viewing some videos at youtube, I found this video particularly helpful: Simplied Approach to Elliott Wave Analysis, I learned that wave 2 usually retraces to 61.8% fibonacci from wave 1. If you look at the picture above, it does indeed touch the 61.8% line. This encouraged me that my count was at the correct area.

Let's continue the count. (click on the photo to enlarge)


Now this is where it gets tricky...I am not confident with my Wave A-B-C pattern. If you look right after the high of wave 5, there is a small rally and I do not know if the count should've begun right after 5, or if I should begin after the rally failed.

The picture below zooms in on the wave C area. (click on the photo to enlarge)



Assuming that the count is correct (yes...it is an assumption so please do not buy PCOR based on this article!), The recent rally ought to be Wave 1. Latest candle shows that the bulls are losing strength, and price should retrace back to 61.8% fibonacci area. The green arrow shows the possible bounce, purple arrow shows the possible breakdown.

Below is a picture of the support areas shown in green-dashed lines. (click on the photo to enlarge)


RSI is currently above 50 but is turning downward. Volume is also declining.

Now all we have to do is sit, wait, and observe what will happen next. If price does indeed bounce off the 61.8% fib retracement, then wave 2 will have been completed and the next one is the big wave 3.

Feel free to comment below. I didn't know that I had it disabled until now.

Caveat!