Well to tell you the truth I was watching the 2.4 cent mark with a great deal of interest this week. Why? Well it has to do with an Elliot wave rule for an "impulsive" wave. The rule states that for an impulsive wave, wave 4 cannot enter the territory of wave 2 (just for clarification, the numbers on the chart designate where a wave ends).
@rcman probably didn't know it, but he was using an Elliot Wave Rule when he posted this week about how AGO bounced off the 2.4 cent support from last August. Well it did go below 2.4 cents, but it NEVER closed below 2.4 cents and that was absolutely critical for my analysis.
So take a look at this chart showing how AGO follows Elliot Wave analysis. Points to note are
* Waves 1, 3 and 5 will be made up of 5 waves each. Waves 2 and 4 will be made up of 3 waves (corrections against the trend).
* The orange markers on the right hand side of the chart indicate the end of wave 4. You will notice that many of them match up with start of wave 2 (or the end of wave 1). So it is quite common to see.
* You will notice that from a monthly time frame perspective that each wave with the trend has 5 waves, and those waves against the trend have 3 waves.
* So now, we are heading up in the (5) wave, and this will be the most exciting ride. In normal stock markets, the third wave is the largest. However, in most commodity markets and especially those miners/producers who have high costs, the fifth wave is the largest, and in Elliot Wave terms becomes "extended". If you want an example of an extended fifth wave, look at the wave from around Christmas to early Jan 2018.
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Good times ahead
All the best holders.
