Originally Posted by Numisgold
Could be. But with a class action lawsuit brewing concerning a huge over-estimation of resources from the Redback acquistion, and possibly looking to dispose of 2 of its promising mine positions (Crixis and Cerro Casale), they might be on the same path that IAG just recently undertook.
Thanks for mentioning it.
I looked closer at the chart and noticed there was no throwover on the upper line but a little throwover on the last touch of the lower line, which Could be a suttle warning the lower line isn't going to hold or the throwover in this case may mean nothing much. I did draw the lower line at the lowest point possible.
Will be interesting to see how the stock acts when and if it gets down to the line again. The line may hold or the stock may have a gap down opening near or below the line and in either case go clearly through it in which case the possible buy would not occur
If kgc is in the midst of a third wave down from the September high of 18ish the line is unlikely to hold. I am of the view if that is the case it will be clear enough not to buy the stock when the line is approached again.
Another possibility is...the stock breaches the lower line again a bit more than it did the first time and then bounces. I would view that as another warning sign about the long side.