Continuing along the theme of Corona Virus stocks, Co-Diagnostics is next up in line. Co-Diagnostics Inc. is one of those names that has also gone parabolic with the COVID-19 spreading worldwide. It still remains very technical, and I think there could be one more leg up before the rally is complete. Lets take a look at what they do as a company:
“Co-Diagnostics, Inc. is a molecular diagnostics company with unique, patented Polymerase Chain Reaction (“PCR”) testing technology. A Utah corporation headquartered in Salt Lake City, Utah, we commercialize our innovative patented and patent-pending technology through sales, development and licensing, to quickly develop molecular diagnostics that are more cost-efficient and perform better than traditional technologies of the past.”
The 2020 rally, in particular, has more to do with their COVID-19 test kit sales more than anything. The USA and the world is in dire need of test kits so speculators have flocked to this company. So with that said, the Elliott Wave view seems to be counting technically clean. Let’s take a look below at the daily view.
Co-Diagnostics Daily Elliott Wave
So I’ll be taking a look at this daily chart in log. Because this stock has had such a breathtaking rally, a linear chart does not represent the chart as I believe it should be viewed. From the all time lows, wave ((1)) is set at $2.00 and ((2)) at $0.85. From there wave ((3)) is set at 21.75 and wave ((4)) is set at $5.57 . The current expectation is for Black ((5)) to make marginal new highs before declining in Red II correction. However, If $6.81 is broken, this count will be invalid and will be favored the top has been set at $21.75.
Using proper risk management is absolutely essential when trading or investing in a stock such as CODX that has enjoyed 3000% gains in a little under a year. Note that Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading and investing.
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