ELD, Eldorado

In our blog of June 6th, 2011, we established a reasonable target for this stock at about $5. Earlier we had a lower target and subsequently we suggested a target below $6 but above $4. (see all those blogs). We seem to have reached that target over the last few days, here are the charts;

eld feb 20 2015 beld feb 20 2015 s

Our best bet now is that the stock came down in a double zig-zag, that is an a-b-c X a-b-c where equality would have occurred at about $4. The low so far was at $5.45 after going nowhere for almost two years. It is still possible that the stock would go lower but this company recently reported improved results, a rare event in this business, so the risk of waiting might be greater than buying here. Otherwise, by all means wait for $4 and if it does get there buy it then.