Banro looks just like the others, VALE, BTU, WLT and so on, however if you change the scale to semi-log you get a much better, and in this case, positive result. Previous blogs are incorrect as I did not go back far enough in time. Here a clear A-B-C emerges which is a completed correction. Typically they go out of business at the low point of C, however if they manage to find their composure, there is a reasonable probability that a new bull has started. This thing went from $17.00 to 13 cents so if you ever liked it you must like it at these levels. From the lows we broke out of the channel and quickly tripled the price, this looks like wave 1. Wave 2 should take back 15 to 20 cents and then wave 3 should start.

Last December we opined that this stock could go quite a bit lower as per this chart;

The ultimate target was at the red line at the bottom of the chart, about $1.75 less a bit. As it happens we are there! Almost. We have gone back to the base of the wedge tracing out a nice A-b-C in which C is about 1.6X A, a very common ratio. The MACD and RSI have been non confirming for about 4 months now. Also from a fundamental perspective, the announced financing of about $100 mln. and it’s dilutive effect has probably run its course.

Viewed over a longer term , the stock may already be in a new bull market starting in the early 2000-ends.

In that scenario a wave 3 up is about to start. This is, however a very low confidence call as the combination of digging for gold and doing it in the Congo is not the happiest combination.