|Cirrus Logic is a leading supplier of signal processing components for audio and energy applications. Founded in 1984, the Austin, TX-based company holds more than 1,000 patents. Its products reach into a variety of audio markets. Well-known global manufacturers rely on Cirrus Logic technology.|
|FIGURE 1: CIRRUS LOGIC, DAILY|
|Graphic provided by: AdvancedGET.|
|Figure 1 shows how the share moved in five waves from a low of $2.16 in January 2009 to a high of $15.76 by May 2010. Note the Elliott wave count, which suggests that the high of May 2010 at $15.76 is the top of wave V. This is confirmed by the relative strength index (RSI), which gave a divergence sell signal. However, the ABC correction does suggest that a C-wave is still to come, also confirmed by the RSI, which is trending down. However, with wave B being as high or close to the top of wave V, I would expect the C-wave not to fall that far. It should bottom somewhere on the support line 4-Y rather than the lower support line of 4-Z, even though this level is with the range of the fourth wave of lesser degree. |
This is a share that should be placed on your watchlist. Do remember, a wave count is only a guide; it's a signpost in the wilderness and can change with the next signpost. Although C-waves normally fall in a five-wave pattern, this need not necessarily occur. A simple abc correction of wave C can occur.
Wait for the RSI to give a buy signal. Look at the wave count, and redo it, and only then decide whether to buy.
|Address:||3256 West 24th Ave|
|Phone # for sales:||6042634214|
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