Heron Therapeutics Inc (HRTX)

UPDATE: 13/9/2015
Stock formed dark cloud cover candlestick which indicate to bearish status. If you do not have idea about this kind of candlestick just google it.

I checked its fundamental status and i didn't find something deserve to mention except the fact that the company is fundamentally so bad. This current situation of company could support my elliott-based analysis. For example, the price of stock is eighth times of its book value and there is no earning or profit company made during last report. The brief review of fundamental status of company could be useful in case if you have not  trade such stock.

weekly chart of stock shows a good and clear waves setup. There is a complete rising 5-waves and then sideways as flat corrective wave and lastly there is a sharp rising wave. Although there is another scenario which consider the corrective wave as triangle but it doesn't change anything.
you will see on chart that I expect two counting, one impulse wave 1,2 and 3 and other corrective wave A B and C, coming days will prove only one of them.

Daily chart below is zooming in the last sharp rising in weekly chart. As you move to smaller chart you will discover the tiny waves and this is good if you are daily, swing or position trader like me.
Here you sees the almost complete 5 waves of C (or 3 if you are in bullish momentum). Most of Elliott waves guideline are present in chart. For example there is good channeling relationship among waves, alternation between wave 2 and 4, and throw-over of fifth wave.

What is the next?  Unfortunately the 5 wave didn't show a clear wave structure rising doubt about if it will finish here or still there is room for more advance. However the light volume with increasing 10%  as well as divergence in RSI doesn't support bullish view. I will watch this stock for any opportunity could be made.

If find yourself confuse with Elliot wave theory and familiar with classic technical analysis particularly chart pattern, the below chart for you. This pattern called broadening triangle where price moves up and down within area between two broadening lines. Here another reason for step a side and watch good opportunity for sell stock or buy a PUT option.

Should I trade against the trend (MU)

UPDATE: 9/9/2015

Nice bearish engulfing candle confirming the bearish counting. I expect a new low price next weeks.


UPDATE: 8/9/2015

Alternatively, the five waves are completed and we are in correction wave.


sometimes when you analysis stock, you probably find good change to gain some money even you entry against the ongoing trend. For example see the MU chart below:

Here and according Elliott wave principle, the stock fell in three clear and complete three wave which mean there still two waves have to take place, a forth wave (corrective) and a fifth wave (motive). The first wave was a leading diagonal wave and gives good indication that price will fall rapidly. Second wave retrace 38.2% of wave  (i) as zigzag corrective wave. The wave (iii) was very impulse wave creating a huge gap in price and that is natural behavior of third waves.

Now the forth wave is ongoing however we need some time to reveal what kind of corrective wave will be. Alternation in time and pattern between wave 2 and 4 is powerful tool in Elliott wave theory. As wave (ii) was simple, sharp and short, I expect wave (iv) will be sideways, something like flat, double two or double three, or triangle. (ii) was retraced 38.2% of wave (i) so it possible the wave (iv) will retraced 61.8% of wave (iii).

I find this scenario is accurate since the divergence in indicators support the my hypothesis, otherwise there is another possible counting if the scenario unverified  by actual price acting.