And here is a chart showing a comparison between the AGO share price and the pice of Iron Ore (overlaid with my Elliot Wave analysis).
View attachment 1032250
Things to note.
1) 2017 share price rectangle. AGO share price trades in a tight band not worried by the spot Iron Ore price. Fundamentally we know contracts are not settled on daily spot prices and hedging is in place to remove this price volatility from the company. However, the market is in the dark a lot because it doesn't have too much information to go on, so it tends to reach some equilibrium.
2) RSI rectangle. The RSI stays within what is called "bull market support". Rule of thumb is between 50 and 40 on a daily chart.
3) 2018 share price rectangle. My Elliot wave analysis says that the end of wave (iv) was .022 Now this price can be hit again without invalidating the analysis, but if it goes below 0.022, the analysis becomes invalid.
2) 2018 RSI rectangle. We are still in bull market support area. So we watch and wait.
I do trade AGO and I was planning to sell on the Iron Ore high, but due to the rapid sell off around the announcements, the low of AGO at 0.022 coincided with the high in Iron Ore. So I didn't sell. As someone else said on the forum (I think it was @NTMan), I choose when to sell, and that is not in the pull backs but in the peaks.
All the best holders, and if Cliff pulls another rabbit out of the hat (I'd like to know what you know
@White911), we will be rewarded.
