Hamilton's E-Wave Analysis

ABX once again.

abx april 13 2013

There are a total of 11 blogs on ABX, most negative or very negative (for instance in July of 2011 I already had a target of $17 in mind), except for the last few where I thought this could turn out to be a buy , albeit just for a trade (as was done once before successfully). It keeps slipping down just a little further than I would like. Here is the total analysis once again.

The big picture is on the left. Typically stocks should drop back to the lowest level in the triangle wave 4. That would be $17 (see old blogs). Another interesting point is the 61.8% retracement level, off $55.84 that works out to $21.33.  If applied to just the increase since 1983 you would have to add the base value of $0.88 to this giving you $22.21 . Then there are a number of trend-lines and equalities mostly clustered around $22. The RSI at 20% or lower is now definitely more oversold than anytime in the past 3 years. Our friends at that big trading house saw gold drop well beyond their prediction and may now actually be in a buying mood, after all their MO is to create a commotion and then pick off those that panic the most. So, in short, we continue to think this is a buy for a trade.