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Photo & Video Stocks, is it a Good Sector for Investors?

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What to expect From Photo & Video Stocks?

The constant growth of web content requires strikingly attractive media. According to a content creation study, there exist more than 910 million blog posts. Content creation requires not only an exciting content but it also great looking media.

This requirement has opened an opportunity for new businesses, the photo and video stock market. Companies as Getty Images or Shutterstock has taken advantage of this need. In this post, we’ll analyse the market outlook for Getty Images (The Carlyle Group) and Shutterstock.

Correlated Companies

Getty Images Inc., the media company of The Carlyle Group (CG), and its competitor, Shutterstock (SSTK) have a positive correlation. In the following chart, we observe that most of the time, CG and SSTK moves in the same direction. When it doesn’t occur, the price tends to normalise, it means, one follows to another. The next question is, who leads the price action? The time will give us the answer.

Getty Images a Carlyle Group company

Getty Images is a subsidiary of The Carlyle Group (CG), who has a market cap close to 7.12B. The price action shows a bullish structure as an A-B-C pattern, which could carry to CG a new high between $22.85 and $24.34. The channelling technique supports our projection. The Invalidation level for this scenario is $17.95.

Shutterstock the Small Cap leader

Shutterstock Inc. is an American company founded in 2003; it’s market cap is near to 1.39B. Currently, SSTK moves sideways as a triangulation structure.

We foresee a new low between $34.32 and $33.04, from where buyers could be placing their limit orders. The upward sequence should drive the price to the area between $52.03 and $57.51.

This move coincides with the upper line of the potential triangle structure. The invalidation level is $29.85. If the price drops and closes below the Invalidation Level, we should consider the “free-fall scenario.”

Finally, Remember that the price is not obliged to move as our outlook implies. The charts published corresponds to the Elliott Wave Theory application.

 

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