The chart embedded into this post is that of Osisko Mining (TSx:OSK). Good company, operating mine, good handle on costs…you know the argument….but the stock has been beaten to a pulp. From the $10.50 highs last Autumn, this chart shows a valid 2-2-2 pattern (etched in purple color) culminating at point D where a person whould have exited or gone short. Next, I have etched in green color another 2-2-2 pattern, but this one fails as point D does not manage to get above point B (one of the key rules to establish pattern validity). From this failed point, I have etched in another 2-2-2 pattern in red color. This one so far has created point A and B. If current price levels hold ( C must stay above A) then we will move higher to a culmination at D. Taking current prices as at today and assuming these hold, I project that we could be looking at a point D of $7.11 to $7.50.
Traders take note. This is a fairly low risk trade, as you would exit if prices slip below point A.