IVN, Ivanhoe Mines Ltd. (when a triangle, is not a triangle).

Back in April (see blog) we recommended exiting this stock at around $24, but we did point out the possibility of a triangle which would imply a further rise.Here are the charts then and now.

ivn apr 2011 IVN july 2011

On the left is the old chart, the green arrow shows what to expect if that had been a triangle. Fortunately I had my doubts and did not embrace that scenario (the entire wave in front appeared complete, so a 4th wave triangle did not fit well) .On the right is what actually happened. Needless to say, the stock did not go up.

Triangles are supposed to be 3-3-3-3-3 structure (sometimes with even more legs) Each individual leg should be a 3-wave structure itself. More often than not it is impossible to discern .