FVI, Fortuna Silver

fvi jun 2012

A little early (at $3.79) we thought this might be a buy with a target of about $5.30 (where it would close a gap). That target remains even if the stock slid a little lower. From $7.50 there is a clear 5 waves down. What is not clear is whether this is a -wave as part of an (irregular) flat correction, in which case we are on our way up, or simple a first wave down after a “thrust” from a nine month long triangle (see previous blogs) In that event there is a lot more downside so we would exit at about $5 and/or use a tight stop. This stock is a good example how the juniors have traded the last little while.