JASO Trading Lower

Updates to the JA Solar projections. JASO traded past the 7.52 price target mentioned in the previous trading strategy to a low of 7.12 so far today. This is an 8% move off the previous close on volume.

Looks like JASO received a downgrade from Credit Suisse to Underperform from Neutral today, as well as a downgrade by Nomura yesterday. Nomura lowered their outlook from Buy to Neutral, but raised the price target by 2$ to 10.00.

According to the previous Elliott Wave count, JASO could possibly test a wave 4 target of 6.27 before finding longer term support. Note that this was projected before JASO made its short burst higher to 10.24 on 10/15/10.

Also, the 7.11 low reached so far today is relative to an internal correction wave 4 low not mentioned in the previous strategy.

If JASO is still in its parent wave 3 move, an internal correction wave 4 projected from the actual 1.77 low and 4.80 high used as an internal wave 3 of wave 1 calculates to a 9.26 wave 3 of 3 high, a 7.11 wave 4 of 3 low and a 12.73 wave 5 of 3 high.

These projections do not take in to account the 10/15/10 price move to 10.24. This could have signaled that trading to the parent wave 3 has completed, underperforming, or it could have been an irregular wave 5 of the internal wave 3 structure of parent wave 3.

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