Hamilton's E-Wave Analysis

MDI, Major Drilling update

mdi may 15 2012

For various reasons we did not expect this stock to double-top at around $20, hence this particular count that is not 5-waves from the bottom, the last leg to $18 is a B-wave. All that is essentially academic as in both cases a 5 wave down sequence should follow, the top as shown is the”orthodox” top of the retracement. It looks like there was a series of 1-2s at the start and therefore we would expect the same at the bottom. Things can happen quickly as, so far at least,  the drop has only lasted 3 months. It is possible that we complete the first 4-5 in the next month or so and take the stock to $9 or below. For the big picture see chart in previous blog repeated below;

Ultimately the target could be the wave 4 low in 2002/3 which on this semi-log chart is a little difficult to guess but is around $1.