It looks like this premier play on gold stocks is close to a bottom. I would first point to a 4-year low at 30, which is only 2 points away. Also, the stock is making a 5-wave decline, with the bottom of a parallel trend channel crossing through around 31. I can be fairly sure of the wave count because wave (2) was a triangle and wave (4) a flat-irregular, honoring the rule of alternation. As well, wave (3) had the characteristics of being extended. So with this knowledge, does one make a play for the May 35, Aug 35, or go in the money with the 30's? Or perhaps further out of the money with the 40's? Any thoughts?
Dale |
