Jaguar Mining did something very similar to NKO. They are gold miners in Brazil, Minas Gerais. Their board of directors reads like Who is Who in Canada. Has not been much help. Once you are this low to ground level there cannot be that much to go. For what it is worth, it may just need a small additional wave down. They have too much debt so it is not clear if it will ever get off the ground. We show it for it’s perfect EW pattern.
Last time we looked, about a week ago, it was virtually impossible to tell if this stock had in fact completed the C-leg down in 5 waves. Today we cannot be sure today either but there is some constructive new information. First the RSI and the MACD are both at three year extremes. The count is five waves and hits the lower trend-line if you use the April rather than the August 2010 high; April is the actual high. Lastly, the short-term chart – I can only get 10 days! - could be counted as an initial 5 wave move followed by an a-b-c down. This does not exclude a normal corrective rebound but it could also mean that a new bull was born. A logical first target would be about $42 . A stop at around $12.25 should be used just in case we have not seen the lows yet.
First the usual then ( March 2, 2012) and now charts;
The stock stopped dead in its tracks at exactly the right level two weeks later. It should drop to the lowest point of the triangle as a minimum, that is $22 or down about 30% from here. Looking at the big picture, much lower levels are possible and likely.
See also previous blog.
Two steel stocks, the oldest and newest. (Take care not to confuse X with TMX in Toronto!) Both peaked at the same time in 2008 and are now both declining. The retracements are shallow and we are getting lower highs. X seems to be well on its way down another leg whereas NUE is triangulating, a congestion pattern that is usually resolved in the same direction as it was entered, that is down