IMG, IamGold update from a week ago

img jan 28 2013

IMG has, or is about to complete 5 waves down. If correct it should trade back up to about $12 which would constitute a 40+% gain. This may be just the first leg of an a-b-c down in a double zig-zag. That would be very negative longer term but there is a great intervening opportunity and there are other counts as well that would be even more bullish (this could be a 5th wave all the way from the Sept. 2011 high, which would then target about $16.50, close to a double). A buy but use a stop-loss one dollar below the buy! The p/e is about 8 and the yield, unusual for gold miners, about 3%.

Take a good look at the RSI. It seems to be repeating what it did back in May to June last year. That led to a rebound of $6 + and the one coming up is of a larger degree if this is the end of a full 5 waves down. See also OSK, Osisko, looks pretty much the same.

IMG, IamGold update

img jan 23 2013

See previous blog for the bigger picture. The stock needs a 4 and 5 to complete this leg down. If and when it reaches $8 or less it should be good for a rise back to about $12, a 50% gain. Look for the RSI to drop convincingly towards the 20 level.

IMG, IamGold update

IMG may 5 2012img dec 2012

Then (May 5) and now charts. We went a little further than the $9.60 suggested, bottoming at $9.31 after completing the symmetric a-b-c. Since then an a-b-c has taken the stock back up to levels close to the mid point of that drop. The big question now is are we going to get a second a-b-c down or is the present correction only partially complete? We simple do not have the answer so will wait for things to clear up. This could become an indicator for gold stocks in general. See also previous comments.

IMG, IAM Gold update

The then (June 3d) and now charts;

img june 2012img nov 14 2012

The predictive value of Elliott Wave never ceases to amaze me. The stock rebounds right into the area of the triangle as indicated after first dropping substantially in the b-wave of the a-b-c. We are now on our way to new lows, or, alternatively, this correction will become much more complex (don’t think so).