R, Romarco update

R may 2011

See earlier comments on this stock. The stock has behaved precisely as expected as pictured again in this schematic and stylized chart. It is just shy of the ideal low of $1.50 but so often in this market stocks turn before they get there. The pattern above, for those that are interested, is most probable an a-b- a-b-c wave 2 retracing about 50% of the entire rise from zero, and falling right back to the wave 4 level of previous degree. The pattern is symmetric in every detail (use the mirror, green line and invert the image) which adds confidence and credibility to the view that this one is ready to resume its upward trend. For the sake of 10cts it is not worth waiting. The first target would be $2.21 to close the gap and then  $2.60.  This latter target would be reasonable even in a continuing bear market. By the way, a nice Fibo ratio would develop if it did this. Suppose you buy at $1.62 and make $1 when selling at $2.62 you would have a gain of 62%, all are Fibo numbers.