As with Franco Nevada, Agnico Eagle Mines also sports a pretty good looking B-wave, however, it did so a few years ago so it might just tell us what could be in store for FNV;

The count over all these years is by no means perfectly clear but the B-wave is. Also it is very clear that the C following the B can be extremely devastating. From roughly $90 to $25 is no fun if you happen to own it, particularly not if you own it as a hedge against inflation and/or a financial disaster. If the C wave is indeed a diagonal than it may not be over yet (see also previous blogs). By the way, you can click on this chart and move it side by side with FNV just to get a better feel for what might happen. I have no idea why these two stocks would be so out of phase with each other; AEM is more or less in tune with the rest of the gold stocks and FNV simple is not.

We did not anticipate the overlap, but otherwise this stock is progressing down according to the script. There may not be overlap if wave 2 was highly irregular, but that is academic now. We will assume that it is going down in a large wedge wave C. Most times the stock does not go to the trend line, but it could. It should , however make a new low, that is below $27. A wild guess right now would be something like $15. If you are long this stock, or any other big ones like ABX or G, as a hedge against inflation it clearly is not working and it does not look like it will in the immediate future. Deflation, not  inflation is the coming problem.

See Febr. 7 and 17 blog. Here is big picture, very much like ABC but a lot more volatile;

Notice that over the past ten years or more this stock followed the pattern of ABX. We do not see the triangle as clearly but one could imagine one. In any case this stock is probable in wave 4 (which we anticipated back in Febr. of this year). By the way if you are still long the stock from $35 you may get a second chance to sell at about $45. On a proportional basis Agnico is well ahead of ABX having already lost 2/3 of its value which would be around $18 for ABX.

See our Febr. 2012 blog. We recommended this stock at $33, a little below the market at the time , for a move to $40 and , perhaps, $44. Here is today’s chart;

Notice that the chart on the left has a big gap, often indicative of a 3d wave. The more detailed chart on the right shows a clear A-B-C with a C as “diagonal” read wedge. Therefore this is a corrective, counter-trend, move, most likely a 4th wave. Here is the total picture.

First of all from $33 (the low was $32.50) to $40 or $44 resulted in a handsome profit of as much as 30+%. If you have not sold yet, you should. Using the highly sophisticated gap-in-the–middle approach this stock could fall to about $17.50, which, as it happens , is also where wave 5 would equal 1. We have counted wave 2 as an irregular flat to accommodate the alternation guideline, this may or may not be accurate, but it is a virtual certainty that this stock is going lower.