The chart above shows the gold equivalent ( in ounces ) per 1000 shares of SLW.
Wave I is impulsive, while wave II is corrective contracting triangle.
Wave II may end by Jan. - 2014 or in Fib. - 2014 at a price of 12.00 ounce of gold per 1000 share of SLW.
Wave III have projections as follow:
( ) 47.42 ounce of gold per 1000 share of SLW ( Fibonacci level 1.62 of wave I ).
( ) 67.69 ounce of gold per 1000 share of SLW ( Fibonacci level 2.62 of wave I ).
( ) 123.81 ounce of gold per 1000 share of SLW ( Fibonacci level 4.23 of wave I ).
The second projection is the most likelyhood, that usually third waves reach Fibonacci level 2.62 of first waves.
So, we enter a long position at 12.50 ounce of gold per 1000 share of SLW and exit at 67.00 ounce of gold per 1000 share of Slw.
To calculate our profit, let's be conservative about gold movement and assume:
( ) Gold to retest its June low at $1178 and not to go lower --> SLW share will be at $14.73
( ) Gold to retrace 90% of its previous down trend --> gold high may be $1846
But SLW shares move faster than gold, let's be conservative again and assume SLW shares peaks while gold at 60% of its move --> SLW share be $96.82
So, our profit will be 557%.
We did a similar study by pricing SLW shares in silver, we got a similar wave pattern, and made three case scenarios, and the mid case scenario gave us similar results.
Wave I is impulsive, while wave II is corrective contracting triangle.
Wave II may end by Jan. - 2014 or in Fib. - 2014 at a price of 12.00 ounce of gold per 1000 share of SLW.
Wave III have projections as follow:
( ) 47.42 ounce of gold per 1000 share of SLW ( Fibonacci level 1.62 of wave I ).
( ) 67.69 ounce of gold per 1000 share of SLW ( Fibonacci level 2.62 of wave I ).
( ) 123.81 ounce of gold per 1000 share of SLW ( Fibonacci level 4.23 of wave I ).
The second projection is the most likelyhood, that usually third waves reach Fibonacci level 2.62 of first waves.
So, we enter a long position at 12.50 ounce of gold per 1000 share of SLW and exit at 67.00 ounce of gold per 1000 share of Slw.
To calculate our profit, let's be conservative about gold movement and assume:
( ) Gold to retest its June low at $1178 and not to go lower --> SLW share will be at $14.73
( ) Gold to retrace 90% of its previous down trend --> gold high may be $1846
But SLW shares move faster than gold, let's be conservative again and assume SLW shares peaks while gold at 60% of its move --> SLW share be $96.82
So, our profit will be 557%.
We did a similar study by pricing SLW shares in silver, we got a similar wave pattern, and made three case scenarios, and the mid case scenario gave us similar results.