I was impressed by the story on this stock by Mrs Joey Freeze on BNN. The EW count could be quite favourable for this copper miner in Peru. First it should trade down to about $1.4 to $1.2, the 4th of previous degree and 62% retracement levels. This one needs a fifth and if it gets one it could easily double. See Fortuna next, for what it may do.
Early Feb I suggested this was a good short, with the caveat that that should only be done by way of an option. Since then it went another $20 higher but we may be at the beginning of a serious decline. With its p/e then above 74 and more shorts on it than I have seen on just about any stock lately, this thing definitely needed the “greater fool” to come along steadily to keep the game going. Facebook’s entry into this field seems to have unglued the optimist a bit. My best guess, using EW, is that this stock could trade at $91 or lower before the year is out. But as always, no promises.
Our call in Aug. and Nov. of 2010 worked out well sofar (see previous blogs). This one could not go up further than $60 on good news, now it is probable going to do a little bounce on so so news. This should continue thereafter to at least $40.
Sprint Nextel started its move, apparently the two parts want to split or something like that. At $5+ we got to a level above the d-wave. That combined with the proximity to the apex of the triangle (relatively speaking), makes it virtually certain that the triangle is done and now we should move up in C. Just as a reference, (this does not have to be so!) the high point is usually reached perpendicularly above the apex, and at a distance equal to the “mouth” of the triangle. In this case that would be about $8 in two to three months. At the very least, for this to be a A-B-C correction the C wave should reach the high point of A, about $6. Keep an eye on it.