We had PTRANS in our watchlist for quite sometime and have been closely monitoring it since the pandemic recovery. The stock has been building a lengthy base since August 2020 after a sharp rally in wave iii. Based on our wave counting, the base appears to be a sideways combination of three corrective patterns or as Elliot calls it as 'triple three'. A combination variant of corrective wave can include zigzags, flats and triangles with each reactionary wave labeled as X while the corrective pattern components are labeled as W, Y and Z. The corrective components often alternate in form as we see on the chart, the correction starts as a zig-zag followed by an expanding triangle and an expanded flat (expected). In combination, the doubling (double three) and tripling (triple three) of the corrective patterns are mainly to extend the duration of the corrective process. This period of consolidation is also mentioned by Richard D. Wyckoff as a period of reaccumulation where the large operators accumulate a large number of shares from the weak hands and exhausting supply before the rally could resume.
Back to our wave analysis, we think the price might go lower down to RM0.66 area which is where wave i has previously terminated. The upcoming move down lower is however in our view, the last leg of the corrective wave which completes the triple three correction. Afterwards, we might see the start of a rally of wave v. We will continue to closely monitor this stock since the fundamentals are very appealing and the business remain profitable despite rising number of cases in covid-19 and the MCO imposed by the government last year.
Back to our wave analysis, we think the price might go lower down to RM0.66 area which is where wave i has previously terminated. The upcoming move down lower is however in our view, the last leg of the corrective wave which completes the triple three correction. Afterwards, we might see the start of a rally of wave v. We will continue to closely monitor this stock since the fundamentals are very appealing and the business remain profitable despite rising number of cases in covid-19 and the MCO imposed by the government last year.