Mylan - I did NAIL the bottom and it looks really promising

Mylan NV is a generic pharmaceutical manufacturer which develops, licenses, manufactures, markets and distributes generic, over-the-counter (OTC) products in a variety of dosage forms and therapeutic categories. Mylan is one of the world’s largest generic pharmaceutical manufacturers with operations in the United States, Europe, Asia, Middle East, Africa, and Australia. Generic drug sales constitute approximately 90% of revenue.

Strictly speaking this stock is not cheap now. It has Price-to-Free-Cash-Flow ratio at 18.8. However, it has been following my count pretty nicely providing me with a handful profitable setups.

I have been counting a corrective rally in MYL for months. I count the top at 76.69 made in April 2015 as the top of the large wave [ 3 ] up. Off that top we had a corrective looking decline clearly structured as (A)-(B)-(C) move down.

On May 22, 2018 I posted a chart (please see it below) with the green target BUY zone. And this is exactly where MYL found its bottom five months later on 26 October 2018!

MYL - Daily chart updated on 22 May 2018

There are two scenarios we have at the table. The first one shown on the chart posted on May 22nd is less bullish. It implies that the (A)-(B)-(C) move down from April 2015 top to August 2017 bottom was only the wave [ A ] of [ 4 ], first leg down of the large corrective wave [ 4 ] down. Under that scenario we should see an impulsive looking rally off the bottom in the green box to the potential top in the red box on the chart above. And that would be a wave [ B ] of [ 4 ]. After its completion we will see another impulsive looking decline in the wave [ C ] of [ 4 ] that will finally complete a large [A]-[B]-[C] correction off the top made by the wave [ 3 ] up in April 2015.

On the chart below you can see another more bullish scenario.

It implies that the (A)-(B)-(C) move down from April 2015 top to August 2017 bottom was all of the wave [ 4 ] down. That scenario implies that we should see an impulsive looking rally off the bottom in the green box targeting the highs reached in April 2015.

And this is exactly that type of a setup when even we have two main scenarios on the table the next move under any of them should be an impulsive looking rally.

MYL - Daily chart updated on 12 November 2018

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