MG, Magna update

Back in January of this year we warned about double-topping (and , of course the EW patterns) by way of this chart:

mg jan 2011

This was the 21st and must be just about dead on the day it peaked. The text wholeheartedly suggested you get out of the stock. Always when you double top and definitely if there are 7 years in between you should step aside or use a trailing stop. If on top of that you happen to be sitting on the Fibo number of 61.8 (the high was $61.65) the decision should be al that easier. Fast forward to today;

MG dec 2011

We hit a of $31.91, that is down 48.24 % and we should go still lower!