Having followed Eastman Kodak off and on with little news flow, it was interesting to hear the company being mentioned a lot today. The stock is up almost 12% today and no one knows why.
People that are asking or speculating why EK is up 12% today are possibly not familiar with EK’s price motion. They may simply not have been trading it, or they could have been news reporters who wouldn’t know anyway.
At the beginning of November 2010, some short term analysis was done on Eastman Kodak. EK was to possibly be in a wave B of a parent triangle wave 4.
This wave B was to have 5 waves and begin at 3.49 on 8/31/10. The analysis called for the 4.96 price high on November 5, 2010 to possibly be the internal wave 3 of 3.
Wave 4 was projected to be 4.58. EK traded to 4.50 on 11/10/10, and wave 5 of 3 was projected to be 5.73. So, todays high so far of 5.48 was expected.
Analyzing todays trading in EK: Projecting a 5 wave price sequence, using the actual 4.50 low of internal wave 4 as price zero and a projected wave 5 of wave 3 top of 5.73, would give you an internal wave 3 of wave 5 price target projection of 5.439. This likely means that 5.48 is its own internal wave 3 of wave 5.
The projected internal wave 4 correction of wave 5 is 5.25 to 5.05 before trading to the 5.73 price target. EK has already corrected to 5.28 today after trading to 5.48.
It is important to consider a correction lower to 4.80. This would be the triangle wave 4 target from the internal wave 5 of 3- price target 5.26. This target of 5.26 traded around 10.20 this morning with a very shallow correction before EK resumed trading higher.
To take a look at EK over the past year relative to some of the previous projections, do a search for Eastman Kodak at the top of the page or click the EK meta tag above in this post.