CVR Energy (NYSE:CVI) – Recovery on the Horizon
|CVR Energy (NYSE:CVI) lost almost 40% of it’s value since July of last year, as the stock started correcting the impulsive 5 waves advance from 2016 low.
The correction taking place is unfolding as 3 waves Zigzag structure which can ideally find support at equal legs area $31.36 – $20.77 from where a reaction higher is expected to take place. However if the bounce fail and another leg lower takes place then the move could turns out to be a corrective Flat structure and the decline from 2019 peak is a wave ” c “.
In both scenarios, CVI is expected to end the correction and find support for the coming few months as a bounce is expected to take place in #energy sector based on correlation with related instruments like Chevron , EQT Corporation and Crude Oil .
CVI Weekly Chart
CVI Flat Scenario
The presented blue box in the above charts is a High-frequency area where the Market is likely to end cycle and make a at least a 3 waves bounce to allow investors to create a risk free position. Consequently, until the stock manage to break above July 2019 peak, it can still do a 7 or 11 swings correction lower before ending wave (II).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.