JKHY – Reversal of Trend with 30% Shorting Opportunity?

Fundamental Indicators:

• Sector – Technology
  
• US Business Cycle Stage – late cycle, when this sector is the least favourable
  
• Revenue - consistently growing since for the last 10 years, average 5-year rate at 16%
  
• Profits – 2022 TTM shows 13% increase compared to 2021
  
• Net margin – a good level of margin with 18%
  
• P/E – quite high at 42 compared to S&P500 with 21 and Technology sector 20
  
• Liabilities - debt ratio is at 0.42 which is within normal limits, Net Debt/ EBITDA is at 0.29 – no problems with debt
  
• Conclusion – still good financial performance but PE ratio is quite high, and correction is long overdue in the current market conditions
  

Technical Analysis (Elliott Waves):

• Main scenario of this idea suggests that we are still observing development of the global growth cycle which is currently at the stage completing wave 3 of the final fifth wave (see higher timeframe graph)
  
• The corrective wave that was formed since August 2020 can be clearly identified as Contracting Triangle which has culminated in January 2022 with wave E
  
• Since then, we can see a very choppy bull run which is often a sign of an Ending Diagonal and in this case, it is an Expanding type where wave 1 is smaller than wave 3 and wave 3 is smaller than wave 5
  

This is a higher timeframe to reflect the full history of JKHY and to provide full wave count:

What do you think about JKHY and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves.

Thanks