IMG, IAM Gold

img may 15 2012

Ten days ago we showed this stock using both an arithmetic and semi-log scale. We leaned towards the semi-log to determine the best entry point. As is invariable the case in these markets if there are two to choose from, you will pick the wrong one. The “target” for the arithmetic chart was about $9.60 (see that blog). Give or take a few cents we are at that target. The RSI is clearly oversold and the MACD turned 4 months ago. Perhaps this is it. If you take out the B-wave triangle – it certainly is not a text-book example – wave C would have a clear 5 waves down as well as the equality with A.