[DRD] update

My DRD model at the backlink was followed exceptionally well and that is potential evidence that M+M are about to take flight.  Here is the model from that post




The current snapshot is slightly compressed on the horizontal scale (60 minute bars vs 30) but the pattern should be clear:   DRD went back down to the 61.8 fib in order to retrace wave 1 up and to fill that gap (which was the essence of the model).  If my model continues to be correct, the next wave up should be a powerful 3rd wave and I think we will see gaps up in DRD because we saw them in 3 of 1.

I model DRD to rise to $8-$10 by the end of the year, worse case.  Yes, I know it seems impossible but it is still LIKELY going to happen even if EWI is right about gold working on a large "B" wave instead of being in a new long term bull market like Avi thinks.  The reason is that the past chart has a significant impact on how the chart will fare in the future.  The likely bounce range for these shares is $8-$22 per the pink box.  DRD  has just now, I believe, unwound its mania that began in Nov 2001.  It is very common to see a stock like this get a massive bounce after doing this.  In the case of DRD, it has just got its new, more efficient gold collection process in place and when the price of gold goes up to allow it, they will be paying out  large chunk of their earnings in the form of dividends.  This is going to get the attention of dividend investors folks.

One more thing: the perfect time to buy into a stock is right after you think wave 2 is finished and there are two reasons for this.  First, you have two good waves that look like motive followed by corrective.  If the correction keeps coming you will easily know the trigger points for stopping out. In this case, it closed today at $1.96 and the stop is $1.91.  So all you risk is a nickel (~2.5%) for huge potential upside.  These are the kinds of low risk, asymmetric payout bets that can pad your wallet quickly.  I'm not saying this can't go a bit lower.  I am saying that it is not likely to do so given the wave count and that if it does it should not drag you down with it if you play your cards smart.  This is light years different than "faith based investing" or gut feel investing which most people do.  Talk about bringing a gun to a knife fight...