DRD is ringing the buy bell.

In this post I cautioned that the model for DRD gold (a small S. African miner) suggested one more wave down in order to finish an ending diagonal that has been building for several years now.  I was hoping for a ridiculously low entry point of $1.50 but the shape of the chart suggests that this is not going to happen.  Here is the current high level picture.  As you can see, the wave has moved down to kiss the lower rail.

Closer in, the 5th wave down of the large triangle should have an A-B-C structure to it.  Blue a was around $4.50.  Blue b around $6.50.  And now I think here at $2.75 we are looking at the very bottom of blue c within a few cents.

Note that in the very final 5th of C, wave 1 of it was at 3.90.  So you an see how long wave 1 was.  Then we see that wave 3 of 5 was the extended wave so we should not have to worry about wave 5 extending.  So at this point, the typical behavior is for the 5th wave to be about the same length as the 1st when the 3rd was extended.  That is just about what we are seeing here.  I would be very inclined to at least begin buying DRD at this level.  I don't give free investing advice so this is not advice but if you didn't have much money to play with then I would just buy what I could at this level and forget about it.  The company is going to rebound big time.  Even a bounce to just $15 is a 5 bagger and this used to be a $60 stock.  This is like buying Sunpower when I posted that solar was a screaming, flaming buy.  I think DRD is the same thing right here.  It has been in a great depression for years and when it breaks free the shorts are going to cover and the longs are not going to let them out cheaply.

By the way, lots of smart people on Seeking Alpha have been saying this is an undervalued mining stock for some time.  Still, the stock continued to go down.  The problem with these folks is that they don't know how to read a stock chart.  Companies don't trade at their actual valuations, they trade at their emotional valuation and the chart is really a chart of the mood of the herd.  The combination of good fundamentals and the chart completing its expected pattern is a powerful incentive to buy at this low price and then hold on for the 5-10 bagger win that is most likely coming.  Having said all that, it's all about odds, not certainties.  Nobody can predict the future.  Card counters in Vegas can't predict the future.  But the casinos clearly admit that counting cards changes the play odds in the favor of the counter which is why they ban those who do it.

And for the record, I just picked up 1000 shares of DRD - first time I have ever owned it.