Clean and renewable energy goes hand in hand with the EV sector in 2020. VivoPower has its hand in both sectors and has had an explosive move off the March 2020 low. This stock moved from 59 cents to a peak of 24.33 which is about a 4100% move. It would make sense that the stock needs a prolonged cool down period of profit taking before the next leg higher can materialize. Before we get into the technicals, lets take a look at what they do as a company:
“Through our subsidiary companies, VivoPower provides a comprehensive suite of sustainable energy solutions, encompassing electric vehicles, solar systems and battery technology, including microgrids, along with critical power services. Tembo’s Electric Light Vehicle (ELV) are the premier 100% electric solution for ruggedized mining, industrial and commercial applications. Vivo Solar builds battery storage systems and microgrids. Kenshaw is a leader in critical electrical power and mechanical services. And J.A. Martin is specialized in industrial electric engineering and power services.”
Lets dig into the charts!
VivoPower Elliottwave View:
Medium term term view from the all time low in March 2020. This stock took its time for the momentum to kick in. After ((2)) set in June, things really started to heat up. Wave ((3)) peaked at 14.84, rallying from ((2)) low at 1.27. After ((3)) peaked, a sharp ((4)) took place which didn’t last long before the surge in ((5)) took place. In the end, ((5)) of Red I peaked at 24.33 on October 9th 2020 and the stock has been correcting every since that time.
It is currently favoured that the structure needs another low to complete the sequence from the peak. The equal leg extreme, or blue box as we like to call it, goes too low to be a reliable target. It is hard to predict at what price VivoPower may find a low at this juncture. However, it does appear that at least one more low below ((A)) of Red II is needed to complete the corrective sequence from the Red I peak.
In Conclusion, as long as ((B)) high remains intact, prices can grind lower before resuming the upside.
Using proper risk management is absolutely essential when trading or investing in a volatile stocks. Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading.
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