See our previous blog of exactly one month ago. We predicted that the stock would peak at $87 or so. Well it did. Here is the chart;
It accomplished three things. It double-topped precisely at the level it reached three times back in ‘07/08. The thrust from the triangle is precisely what the triangle measures and the channel contains most of the rise since 2009. Again , our minimum target is at $65 so if not out already sell now.
This is a fascinating stock. Owned by Russian interest in the middle of the US wilderness (Montana) it stays under most peoples radar. They are miners of white gold, platinum. We have done very well with it and hope to continue that record (see previous blogs). Here are the updated charts;
We are changing our count to a very large A-B-C X A-B-C or double zig-zag. The X is the intervening leg. If you look closely you will notice that both A-B-Cs have more or less identical structures (fractals). If correct the next big move should be wave C of the second A-B-C. If it compares well to the same corresponding wave C of the first A-B-C, it should be rather nasty and ultimately should make a new low. As usual we have no idea what might trigger such a sharp move. Perhaps new ways of building catalytic convertors, perhaps geopolitical turmoil or perhaps a leap in the alchemists’ science. Time will tell but we would sell now.
Biotech is doing as expected. The corrective (wave 2) is not yet over. A reasonable target would be about $245 where wave 4 of 3 on the way down was and /or the 62% retracement level is. Then we should move down in a wave 3 which should take this iShare down towards roughly $125.
In two months the stock went down by about 13%. This is either the start of a large down trend or, at the very least, a simple a-b-c correction. Either way we should get to $45 – the base of this wedge – before anything else. If nothing else this raises the question why Canadian banks are doing so well, perhaps a last gasp?