While the general market has had one of the worst routs since the financial crisis, there are a select few stocks that are out performing. Today we’re going to take a look at Teladoc Health ($TDOC). First of all lets take a look at the services they provide as a company:
“Teladoc Health, Inc., formerly referred to as Teladoc, Inc. and Teladoc Medical Services, is a multinational telemedicine and virtual healthcare company based in the United States. Primary services include telehealth, medical opinions, AI and analytics, and licensable platform services.”
As one can imagine, their business model would benefit from individuals that are staying home or self quarantining.
Teladoc Health Elliott Wave Weekly View
The Elliott Wave count since the all time lows set in 2016 paint a bullish picture. Teladoc Health bottomed on March 28/2016 at an all time low of $9.08. From there a Red I is set at $19.49 on the 19th of September 2016. A Red II then followed on October 14/2016 at $14.00. From there a Red III top materialized at $89.05 on October 1/2018. A Red IV then bottomed on December 24/18 at $42.08. Presently $TDOC is rallying in a Red V and has reached the equal legs area of Red III-Red IV. This area is where a Red V Can materialize for a longer term top. The more in depth 4H count suggests further upside is needed to complete the bullish sequence.
Teladoc Health Elliott Wave 4H View
From the Red IV low of $42.08 set on December 24/18, a Black ((1)) is set at $70.90 on Feb 20/19. Black ((2)) is set in in a running flat on Aug 28/19 at $54.70. From there some nesting has occurred with an extended wave ((3)). Black ((3)) is favoured to be nearly complete with one more leg up expected to complete the sequence.
Final thoughts
There does appear to be at least one more leg up in this stock before a longer term top may solidify. Chasing final 5th waves are usually not a great risk reward, so be sure to maintain your stops to control your risk.