CMBM Preps for Successive Pump and DumpsCambium Networks Corp has undergone a steep 77% drop in value over the past year. What may seem like a red flag for many investors seems to be a safe play for me (and the Digital Surf Trading Community). In Elliott Wave speak, the current patterns at play for this stock are likely that of a Wave 4 (Extended Flat correction) where (c) wave has completed a rare drop to the 2.618 fib, compared to the levels of Wave 4's (a + b) waves (see totality of Wave 4 in yellow).
Considering the size of Wave 4, Elliott Wave Theory suggests that we are due for a test within the range of the red box. With Wave 3 being tremendously extended, Wave 5 is likely to be a volatile move filled with sizeable upside and downside swings. With good timing, this stock could prove to be a scalper's favorite for the next year or so.
Within the DSTC catalog, generally I like to document and follow stocks with a minimal 20x trajectory however due the current nature of the markets, not many of our premium mappings are ready for action yet so 5-10x will suffice for the time being.
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