BGM (Barkerville Goldmines Ltd.) on Vancouver, by special request.

bmg

This is Barkerville Goldmines Ltd., a blue chip that trades on Vancouver and is, so at least the name suggests, active in digging gold, or, considering the length of its existence, trying to find it. This is how wealth is created or destroyed but EW works best with more participants, so the more the merrier certainly should apply.

One thing that is interesting about this chart is that both legs up are precisely equal in both magnitude and direction. This often happens when one is looking at a 1-2, 1-2 series of waves, more or less the way a duck or goose takes-off from water. If this pertains then the stock should, more or less follow the arrows as drawn (they too are drawn vector equal) , up nine blocks , down 5. Given the light grey lines that have till now defined the degree of freedom that the stock enjoys, a of about $1.35 over the next month or two should hold the stock. It is already at the moving average and both the RSI and MACD have turned (hopefully).

The bearish case typically would be an A-B-C correction from the lows with the continuation of the bear starting from $2.20; this is not a believable scenario with a stock that already traded at pennies. Nor for that matter is any other bullish scenario as in 1-2,3,4,5. due to the overlap occurring at at least two different degrees. In short , expect wave 3 up to start soon . A stop at about $1.30 might be a sensible thing were it not that this is an all-or-nothing trade. You are, sort of, in the position that Watson found himself with this stock, on a rock and a hard place.

the hond