I Am Gold – IAG

As I recommended, hopefully everyone was able to exit the I Am Gold (IAG) trade before its Wave C started. Here is an update on the trade and some support areas for re-entering the gold trade. This next trade opportunity could be something more of a longer-term investment with trading opportunities during the uptrend.

The current Elliott Wave chart for I Am Gold (IAG) is best viewed through a 1 year daily candlestick chart. IAG’s share price appears on its way to completing an Elliott Wave 8 wave cycle.

The Current Elliott Wave Breakdown For IAG’s Share Price

I believe this complete 8 wave Elliott Wave cycle represents the beginning of a larger 8 wave cycle. The above 8 wave cycle represents Waves 1 and 2 in the larger cycle. A larger 8 wave cycle would lead to even higher prices than the previous $5.87 high. After IAG finishes its pullback, a Fibonacci Extension Tool can be placed on the chart to calculate some upside price targets.

Re-Entering The Gold Trade

Buying in after the completion of this downtrend could be very lucrative. From a time perspective, this wave has the possibility to hit the $2.50 target price by October 21, 2016, give or take a couple of days. You want to be certain you see the appropriate bullish reversal signs before starting your scale-in purchases.

Do not rule out the possibility of a bottom re-test. While the $2.50 area with the gap-up identified above seems like a good support area, if it is broken a retest of the $1.18 will happen. Save some cash for another scale-in purchase down there if it happens. The more bullish factors that are seen at the $2.50 area for a reversal, the better the chances are that the support area will hold. Just be prepared in case of a break.