MDI did stop its retracement at $13.50 or so, but the wave 2 may have been more complex than anticipated, consuming more time. Alternatively a quick 1-2 of 3 got interwoven with wave 2. In any event we are now in wave 3 and matters should unfold a little faster.
Then (29th July, 2011) and now;
A year has gone by for this Swedish ball bearing manufacturer and the stock is down about another $9, from $27 to $18. That is 33% with a lot of ups and downs. The target, then and now, remains the same at about $5.
Here is another miner, in this case coal, that is a little ahead of VALE and TCK.B. Because the “flat” points to stock prices in negative territory, if it were to unfold as per the picture, which is theoretically possible but in practice not, one must assume that the drop will stop soon. From $95 to $6 is already an impressive correction. Anyone holding this stock seeking alpha must be rather disappointed. It is better to keep stocks that are clearly a hold. There aren’t many but here is one, a grocery store, that stands out, at least for the past 10 years since a few accounting irregularities tanked the stock;
This is a zig-zag, not that different from a flat except that it is a faster pattern and consequently unfolds as a 5-3-5, not a 3-3-5 sequence. The adjective Koninklijke means Royal.
I believe this is the world’s largest miner. The pattern is perfectly clear, it is a “flat”. It targets about $8/$7 to the downside but obviously can go lower. The minute details are open to debate but the overall pattern is really is not. For comparison we add TCK.B (or A) for which there are previous blogs;
Teck has the same pattern, except that it is “irregular” (the B-wave is higher than the A wave). It targets about $13 to $15, proportionately about the same level a Vale. There are 9 different blogs going back two years anticipating these moves, perhaps they will continue along the scripted path.
The charts are deliberately with the same time-frame and size. You can click on them and move them around to make a better comparison.