Harmony Gold Mining (HMY) has reached buying capitulation as you can see from the sharp volume spike at the wave (1) high. This thing has been on fire but as stalled significantly the past few weeks and triggered a bearish signal on my proprietary indicators. The wave (2) correction is unfolding as a W-X-Y combination correction so I expect a move lower toward my target area of $2.80 - $3.00 quite over the next couple weeks. Here is the trade I put on yesterday....it is trading at a better price now with a big gap up this morning but I expect that gap to be filled with a move downward quite soon. I don't like any of the put spread options so I'm going with a small position on a straight put only:
Buy to Opoen HMY May 20 4 Put @ $0.64.
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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.
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