Fortuna  got pretty close to the target of $3.50 (4th wave of prev. deg.), and, not coincidentally  a 50+% retracement from the highs of $7.50 or so. It could be a buy here around these levels for a trade as both the RSI and MACD are at 3 year lows. Should the stock at least close the gap it could climb to $5.30 easily. Thereafter we remain disinterested in the precious metals.

Fortuna has tested peoples patience  quite a bit by not doing very much. Now it is making up for lost the and is already closing in on our initial target of about $3.50 (see previous blog).

Fortuna just would not go down as expected. It has now spent 10 months going nowhere. The pattern, however , has become clearer. There is either a triangle up here , or a series of 4-5’s, either way the stock should soon drop to about $3.50 (wave 4 of 3 and 62%). This does not bode well for the precious metals as a whole.

Fortuna is an example in point. % waves may be complete, but then they may not be. If the sequence is complete we are looking at a B-wave that makes the stock double-top about where it is now. However is a simple 5th wave is in progress we could go all the way to the upper trend-line. Between those two is a triangle ( in blue) or a wedge (in red). Other counts may apply but they are not readily visible so , probable do not exist. Ergo if you short this now, or stay short, chances are 10 to 1 that the stock will trade back at least to $4.5 (triangle and wedge) or $3.5 (wave 3 of 3?) or even $3 (62%). In the end much lower levels may apply given enough time. In short you are almost guaranteed a return of at least 30% even if you are wrong by being too early.