ABX update, again and K, Kinross

abx june 27 2013 labx june 27 2013 s

Our best guess is that ABX is completing the 5th wave of 3. A trend line target would be somewhere around $14 which is also where waves 1 and 5 of 5 are equal. The RSI seems to support this. The reason why the stock will be a buy there is that there should then be a 4th wave (of larger degree) to take the stock up fairly rapidly to $24 and possible a lot higher as the guideline of alternation would suggest this wave should take the form of a zig-zag. The stock is a buy regardless of how precisely this plays out as even at todays price the outlook is for an $8 rebound or 50%. During this 5th wave of 3 the stock dropped from $40 to $16 or 60%. Regardless of the fundamentals a rebound here would fit nicely.

K, Kinross, is essentially in a similar position!, that is a 4 of C starting about now (slightly different from count in previous blogs). It could bounce from the high $4 to close to $10 before it starts its last dive in 5.

K june 27 2013

See  also previous takes on Kinross.