A Bullish Setup In EPIQ

It is not often that one finds such a clear wave pattern in an individual stock, but the pattern in EPIQ seems particularly so. A move above the wave 2 b high of 16.55 will confirm that wave 3 of (3) of III is underway. (Waves I and II are not shown.)

I don't know what the catalyst might be to propel EPIQ higher. The recent earnings report was met with a tepid response, but there must be something there for the I, II, (1), (2), 1, 2 coil to develop over the last 3 years. The less bullish view is that the upcoming move would be wave 3 of (C), so the initial targets are 20.72 and 21.55. If these are taken out, then we might expect a multimonth run to much higher highs. If EPIQ stalls at those levels, then the less bullish view would prevail.

One way to deal with this uncertainty is to watch for the completion of 5 minor waves up in the current count. If wave (3) only matches wave (1) in length or is even shorter, then we should consider it to be wave (C) instead and exit the position entirely. If, on the other hand, wave (3) is 1.618 x wave (1), we should consider taking half profits and letting half run with a stop just below the wave (1) high of 18.91. After the completion of 5 intermediate waves up, we would raise the stop to just below the wave I high of 20.72 with a potential target of 28.61 or higher.

Given the amount of time it has taken for this setup to develop, it could take many months to fully play out, so this is not a trade for the impatient.