Revlon came up on my stock screener today Monday, August 24, 2009. The stock was down big today, about 8%, lets see if we can find out what might be happening.
Typical of most stocks March lows, specifically March 30, 2009, was the most recent low for REV at 2.30. May 27 the stock topped off at 6.00, June 23 the stock hit a low of 4.33, June 30 stock hit 5.58, July 13 the stock hit a low of 4.33 again and August 10 the stock reached 6.40.
From the 2.30 low to the 6.40 top, as of today, we have completed a 38% retracement. Although the stock has corrected further than this already to 4.33 twice. This double was most likely wave 4 and the B wave of the correction the June 30 high of 5.58.
This could mean the stock either has further to go to a wave 5 target above 6.40 and will not correct beyond 4.33, or wave 5 is complete within the parent wave 1. If the wave 5 of the daily parent wave 1 has been reached, this most recent weakness represents the correction wave 2 of the parent wave.
If the uptrend is to continue, the C wave of the ABC corrective wave 2 will again not reach below the 4.33 level. If it does break, the dominant trend will be lower and the 5 wave sequence will correlate to the down side from 6.40, with upward momentum being corrective to this trend using ABC corrections.