MAT: Expect short term downside to continue before rally resumes

Mattel, Inc. (MAT), a children’s entertainment company, designs & produces toys & consumer products worldwide The company operates through North America, International & American Girl segments. It is based in El Segundo, CA, comes under Consumer Cyclical sector & trades as “MAT” ticket at Nasdaq.

MAT made a low of $6.53 during March-2020 sell off in the market. Later it showing impulse sequence as I red ended at $26.99 high on 5/04/2022. While below there, it favors correcting lower in II correction before turning higher again.

MAT – Elliott Wave latest daily view

After March-2020 low, it placed ((1)) at $9.44 high & ((2)) at $7.54 low. ((2)) was a flat correction retraced 0.618 Fibonacci retracement against ((1)). While above there, it unfolded in third wave extension. It ended ((3)) at $23.31 high on 4/23/2021 low. Below there, it favored ended ((4)) at $17.95 low on 10/04/2021. ((4)) was ended slightly above 0.382 Fibonacci retracement of previous sequence. Finally, it ended ((5)) at $26.99 high on 5/04/2022 as wave I red. While below there, it favors correcting lower in II in proposed zigzag correction.

Below wave I high, it placed ((A)) at $21.07 low on 5/24/2022 & ((B)) at $24.20 high as triangle on 9/12/2022. While below there, it favors lower in ((C)) leg to finish II correction. Currently, it favors lower in (1) of ((C)) & expect short term weakness before a bounce in (2) followed by further downside in (3). It expect ((C)) to extend towards $18.23 – $14.54 area to finish II correction before upside resumes. It expect to resume upside either in III or at least a larger 3 swings reaction higher hitting the extreme areas.