AU update

au march 8 2015

In our previous blog we noted that it would clear things up quite a bit if this stock were to break $13. It did but not in a significant way and therefore neither of the two possibilities is eliminated. Nevertheless we are leaning towards the idea that we started a new uptrend last year at the of $7.45. From there the stock almost doubled and it did so in what appears to be a fairly decent 5-wave move (which still could just be a c of an irregular a-b-c wave 4). If this is correct the stock should be a buy here or just a little lower, it has already retraced about 62%. All this is shown in red. The RSI is already oversold.

     The other possibility, which we do not favour, would be that of an expanding diagonal or wedge that needs to complete a 5th wave. Al that needs to be achieved is a new low. Either way (see big picture previous blog) the stock should bounce back to at least $20 someday in the not too distant future.

is, of course the symbol for the element gold (#79) on Niel Bohr’s periodic  table of elements just in case you were not paying attention in your chemistry class. It must have been quite a coup for this company to get that ticker symbol.