In our blog of June 6th, 2011, we established a reasonable target for this stock at about $5. Earlier we had a lower target and subsequently we suggested a target below $6 but above $4. (see all those blogs). We seem to have reached that target over the last few days, here are the charts;

Our best bet now is that the stock came down in a double zig-zag, that is an a-b-c X a-b-c where equality would have occurred at about $4. The low so far was at $5.45 after going nowhere for almost two years. It is still possible that the stock would go lower but this company recently reported improved results, a rare event in this business, so the risk of waiting might be greater than buying here. Otherwise, by all means wait for $4 and if it does get there buy it then.

Then  (Sept. 2012) and now;

The target then, calculated on the basis of equality between the A and C legs worked out to , roughly, $5. The low, so far, is $6.23. We caught the high of the B-wave precisely to the tick (see previous blogs) so there is no reason to tempt the Gods for an encore. Suffice it that somewhere around here or a little lower, this low cost producer is a more attractive buy than at $22. By the way, $4 is roughly the low point in a 4th wave of previous degree.

The usual then, 6 of June 2011, and now charts;

Eldorado is another gold stock that we have commented on before and had completely forgotten. We singled out $10 as the ideal first target for this stock for the simple reason that it represented the base of a very clear wedge into the highs. The stock did exactly that and has been rebounding for quite a while. The nice thing is that the drop from $22 is a 5-wave sequence, clear as a bell and having an expanding wedge for wave 5. It has just retraced all of that 5th wave as is to be expected. In the mean time both the RSI and the MACD are at nose bleed levels indicating a turn soon. The stock has retraced about 50% of the fall and could do a little more (to $17 maybe??) , but once done the drop should resume with at least another 5 wave sequence. If the second leg is equal to the first it would target $5, very close to the low point of the expanding triangle wave 4 of previous degree. By the way, this is a very low cost producer!!