Molina Healthcare (MOH) – Elliott Wave PerspectiveMolina Healthcare, Inc.BATS:MOHWaveTheoryInvestingFrom an Elliott Wave perspective, MOH Molina Healthcare (MOH) has completed a clear 5-wave impulsive move to the downside. This decline should now be followed by a corrective 3-wave structure, most likely forming a B-wave. Some may interpret the recent price action as a completed correction. I disagree. While one could theoretically label the decline as a WXYXZ structure, the Fibonacci extensions do not align with the typical requirements for such a complex correction. Therefore, I classify the entire move as a 5-wave impulse forming wave A. Following an A-wave, a corrective B-wave is expected, typically unfolding in an ABC or WXY structure. Since the low of wave A appears to be in place, we can use standard Fibonacci retracement levels to estimate potential targets for wave B. The key levels to watch are: 61.8% 78.6% 88.7% Why not the 50% retracement? The reason is structural. There is a significant resistance zone between $250 and $373, where the stock has repeatedly reacted in the past. This makes it a technically relevant supply area. The 50% level could potentially mark the end of wave A of B, from which we might see a temporary pullback (wave 2 of A within B) before the final push higher. My primary target for the completion of wave B is around $324. This level sits near the midpoint of the broader resistance zone and aligns with the 78.6% Fibonacci retracement. Additionally, there is an open price gap between $268 and $306. A move toward the 78.6% level would fully close that gap, whereas a rally limited to the 61.8% retracement would not. The gap could, of course, be filled later. Short-Term Structure At the moment, we appear to be in wave 1 of A within the larger B-wave structure. I am looking for a 5-wave move to the upside to complete this wave 1, followed by a corrective pullback in wave 2 of A. Importantly, this wave 2 should not retrace beyond the 78.6% Fibonacci level of wave 1. A deeper retracement would significantly increase the probability that the correction is not yet complete and that further downside is still ahead. Momentum indicators support the bullish case for now: both MACD and RSI are showing bullish divergence, suggesting that the low may already be in and that the corrective B-wave toward ~$324 has potentially started. Risk & Invalidation A sustained break below the recent low would increase the probability that wave A is still unfolding. A full invalidation of this scenario occurs on a break below $121. Such a move would invalidate the assumption that the larger corrective B-wave has begun and would suggest continued downside within the broader bearish structure. How to trade? The preferred approach is patience. First, wave 1 of A must complete with a clear 5-wave impulsive structure to the upside. Only after that completion would we expect a corrective pullback in wave 2 of A. The ideal entry zone lies within the 50% to 78.6% Fibonacci retracement of wave 1. This is where wave 2 typically finds support and where risk-to-reward becomes attractive. Stop-loss considerations: Conservative approach: Place the stop approximately 1% below the 78.6% Fibonacci retracement level of wave 1. More aggressive approach: Place the stop below the low of wave (A), accepting higher risk but allowing for more volatility. If price retraces deeper than 78.6%, the probability increases that the corrective structure is not complete and that further downside may follow. This analysis reflects a personal market interpretation and is not financial advice.