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Shares in BSkyB have bounced back from their lows in January in line with the broader market but the rally is nearing an end. When applying Elliott wave analysis to the chart, the rally from 22 January appears to be a counter trend within a long term decline.

The long term decline started in July 2007. The structure is an impulse wave, where declines are in five waves, in which wave iii (circle) subdivided into five waves [(i),(ii),(iii),(iv),(v)]. Because the overall decline should be in five waves (circle), the chances are that the current rally is wave iv (circle) and the next move should be a decline to 458p. Some indicators like the MACD have already turned down, the stock may hold up for a few days but by the end of next week BSkyB shares should be trading significantly lower.

Key Data
Epic: BSY
Market Cap (£m): 10359.3

The unique timing analysis at e-yield has been developed by Thierry Laduguie, who has been working for investors since 2000. For more information, visit E-yield.co.uk

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