After an 88% drop from its 152 week highs in July, SUNE has completed a possible bullish Wolfe Wave setup. After such a vicious drop, this could also be the terminal movement of the downward impulse which may be an indication that any upcoming correction could be strong as well. Frost and Prechter's Elliott Wave Principle describes this price formation (pp. 37-38):
"An ending diagonal occurs primarily in the fifth wave position at times when the preceding move has gone 'too far too fast'. ... In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.
A contracting diagonal takes a wedge shape within two converging lines. This most common form for an ending diagonal (in a bull market) is illustrated and shown in its typical position within a larger impulse wave."
To add to the bullish bias, RSI is oversold with bullish divergence and many missed pivots sit above price. SL is placed below lows with targets at the Wolfe Wave target line and .382/missed monthly pivot for September 2015.
"An ending diagonal occurs primarily in the fifth wave position at times when the preceding move has gone 'too far too fast'. ... In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.
A contracting diagonal takes a wedge shape within two converging lines. This most common form for an ending diagonal (in a bull market) is illustrated and shown in its typical position within a larger impulse wave."
To add to the bullish bias, RSI is oversold with bullish divergence and many missed pivots sit above price. SL is placed below lows with targets at the Wolfe Wave target line and .382/missed monthly pivot for September 2015.
