MDI, Major Drilling Group Int.

MDI lMDI s

Looking at the longer term Yahoo chart, there is little doubt that the drop from the highs of about $20 is a wave A , followed by a B that is quite symmetrical. Ergo we should  be getting in the C now. C’s are always 5-wave structures so the drop from $17.50 to $9.50, about 50%, must be a wave one and we are presently in the process of completing wave 2 that looks to be a zig-zag. If the c within the zig-zag equals the a, it has the potential to take us to $16.5 where it would have retraced $7 out of $8 or 87%. If, in fact, it stops right here, that would be 6 out of 8 or 75%, very close to a Fibo 76%.

The RSI is moving into overbought territory already. Also this one most definitely does not pass the most elementary test of good investing, i.e.  buy low,sell high. A superficial glance at the long term chart would suggest that you are buying high for starters, so you will have to find that proverbial “greater fool” later on, which is always far more difficult. This is a sell.