SUMMARY
Ooof! When I see a chart like this, I cringe. Loxo Oncology (LOXO) is about to complete it's wave 5 (blue). Look how it gapped up and this kind of price move is called a bearish evening star. It's as if the final bull star is giving its last shine before setting. Price could continue incrementally higher, but is this when you want to take profits or buy with open arms?
The subwves show that wave 5 of blue 5 could be done (red circle). The red ABC corrective waves show the potential of the retracement towards teh wave 4 support zone. The MACD is also making lower highs while price is making higher highs. This is a bearish divergence.
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