MDI, Major Drilling Group update

Then, Dec. 6 2011, and now charts;

mdi dec 6 2011mdi jun 9 2013

See previous blogs. Despite a minor initial error with regard to where the B wave ended, the stock has followed the script nicely. Short-term things are not that clear;

mdi jun 9 2013 s

As we are not sure where the large B-wave terminated it is hard to determine where it will go from there. Perhaps an irregular a-b-c for wave c. The last part should still subdivide in 5 waves, either without overlap (green) or as a diagonal (black). Given the strength in the RSI and MACD we would prefer the diagonal.

MDI update

mdi sept 2012

Despite the possibility of still lower levels it now looks like a first wave was complete under $9. If so a wave 2 is now underway which may take the stock towards $13. Long term here should be more downside (see previous blogs).

MDI update

mdi july 17 2012

MDI did stop its retracement at $13.50 or so, but the wave 2 may have been more complex than anticipated, consuming more time. Alternatively a quick 1-2 of 3 got interwoven with wave 2. In any event we are now in wave 3 and matters should unfold a little faster.