Earlier this year (in April) we warned that Agnico had probable completed a nice B-wave and would go down big time and certainly to the level of the triangle in the middle of that B-wave. Here is un update;
The stock dropped today, supposedly on increased costs resulting in less than expected earnings. We are now in that range of the triangle. We may get a pause but this should continue down to less than $30, see also previous blogs.
Talisman is a good example of a B-wave correction. In this particular case there is no mistaking the 3-wave nature of the correction from the Nov. 2008 lows. This one hit the lows early compared to most other stocks and perhaps it started the trek down earlier as well. There are still possible counts why this stock does not have to go straight down as in a “flat” , the most likely pattern. We could be forming a huge triangle for instance, but until proven otherwise , it is fair to assume that this stock will drop to just below $8.
Never paid much attention to Juniper Networks, but I thought I would put it up as another very good example of a B-wave. This one peaked early in time and at a higher level than required, probable being pulled up by the upper trend-line. But it is already down 30%. It may pause a bit around the $22 level but should ultimately continue to below the start of the corresponding A wave, or about $13.
West Texas did not drop to the +/- $82 level as it should. This is a pretty good hint that the count may be wrong (OIL, by the way, did). Therefore I am changing the count. Triangles only occur in either wave 4 positions or in B-waves. It was assumed that the twirling around $100 was a B-wave but given the subsequent action perhaps it was a 4th. Mid june we had another triangle at around $95 which almost certainly is a B-wave. All of this makes the outlook more bearish than before. The $82 level originally anticipated would be reached if all of this is just a large A-B-C. But we could actually go quite a bit lower if this is a much more complex correction starting with an initial 5-waves !