As anticipated (see Dec ! blog) this stock has been breaking down and is now about $10 cheaper. The “rising flag” pattern at the top is highly reliable, look for another $20 at least!
Month: February 2012
EEM Emerging Markets ETF
The EEM has followed our script precisely, perhaps it will continue to do so (see various previous blogs). One can argue about certain minor details in the above count, but in the main it looks pretty acceptable. 5 down with a nice little triangle in the 4th wave position for Wave 1 down, taking back about 34% of the preceding rally and then an A-B-C in which C is vector equal to A, retraces roughly 62%, and moves right back to the 4th wave (highest point in the triangle). The RSI and the MACD are both topping. Somewhere around here this ETF should turn down.
The XEM, the Can $ equivalent, has pretty well followed the same pattern, shown below without annotations.
AEM, Agnico Eagle
Agnico might well be a buy at these levels. It is only a dollar or two away from having lost 62% of its value (about $33). There are two possible counts, one has an a-b-c finishing at about these levels and the rest is all up. The other, a larger irregular A-B-C that now needs 5 waves down in C. in that case we are in wave 4 that could easily take us up about $10 at least before 5 starts. So in both scenarios we should get reasonable upside. In detail:
The wave 4 could go as high as $52. The stock is trading at levels where it was in 1986, gold itself is trading at levels triple that at least. By the way, I do not mean to convey the impression that I like gold, just this stock, just for a little while.
NSU , Nevsun Resources
Same pattern. These guys do not fool around, they do it all in a day!