Just to belabour the point a little further, here is the “bigger” picture. Waves 1 and 5 will be vector equal (this is a semi-log scale chart!) at about $4 which is also where the bottom trend line runs. Rock bottom? Probable.

By the way, we first recommended this stock at $5 on March 12, 2009.

10 cents away from our $4.75  “guesstimate of a week ago. Again, the target should be around $10 so you can be a perfectionist  and wait a little longer and maybe miss the boat all together, or a non-believer and pass up this opportunity.    Apparently, Rio Tinto and Mongolia are arguing about the next $5 bln. tranche in the project but it will go through one way or the other.

Sometimes we get it wrong. This is a good example but now things are looking up.

Coming from $29, $8 looked like a steal. This is after all the largest copper mine in the world run by Rio Tinto in the lovely Republic (?) of Mongolia.  Why would the Chinese go to Chili and or Indonesia if they can get this stuff right on their doorstep (80 kilometers to be exact)?

The 5th wave, if that is what it is, appears to be an expanding diagonal 3-3-3-3-3 pattern. It is complete except for the last minor leg which can go to the trendline but does not have to except that it does have to make a new low, that is <$5.17. A wild guess would be $4.75  or so. It does not matter if you do not get rock bottom as the stock should rebound violently and reach $10- in fairly short notice. A double for the brave and if you already own it, put it in the buy-and-hold long-term category un till it gets to $10.

Mongolia has a 34% interest and Rio (with others) 66%. The mine will contribute about 1/3 of Mongolia’s  economy. This thing will work soon.

We had an ideal target for this stock at $7.08 based on Fibo ratios. Impatience got the better of us and consequently we thought it might be a buy already at $7.70. In the mean time the stock has made a marginal new low at $6.91, close to our target and has spent almost a half year doing so. The RSI and MACD are not confirming the new low.

As far as a count is concerned we not at all sure but the best fit would seem to be a 5-3-5 A-B-C with C almost vector equal to A. Any rebound from here could be substantial. This is a big mine that could, by itself, upset the balance of supply without  being effected much because of its low cost of production. Below is just one example of the machinery used.

P.S. Sometimes rougher charts appear to be more accurate,here is the same from MSN showing the top as the second top!