$JSEGND - Grindrod Ltd: Great Run But I Count Five Waves Up
Grindrod recently came out with a very good set of interim results reporting record export volumes at its Maputo port and growth in excess of 20% in revenue and headline earnings.
A purely fundamental reasoning would suggest one should buy the stock now.
A look at the Elliott Wave structure from the April 2020 low shows a need to be cautious.
The rally from April 2020 to date has unfolded in five waves with a clear impulse for wave 3 and a triangle for wave 4.
Though momentum still looks strong in wave 5, it is very difficult to forecast where wave 5 might terminate and I always err on the side of caution when a stock is trading in the fifth and final wave of a bull sequence.
A purely fundamental reasoning would suggest one should buy the stock now.
A look at the Elliott Wave structure from the April 2020 low shows a need to be cautious.
The rally from April 2020 to date has unfolded in five waves with a clear impulse for wave 3 and a triangle for wave 4.
Though momentum still looks strong in wave 5, it is very difficult to forecast where wave 5 might terminate and I always err on the side of caution when a stock is trading in the fifth and final wave of a bull sequence.
