Textbook entry into GPR.TO
Entry: 3.85
As price action approached the bottom of the triangle mentioned on Wednesday, strong buy pressure kicked in. This resulted in a 6% move, however this move is dwarfed by 11% in AXR.TO.
The potential upside for this stock
I am looking to get defensive around the 6.20 area. The key here is to wait for the triangle to get broken either up or down for a high probability entry.
Looking at this from a Elliot wave perspective, it is likely that the 4 wave triangle will result in a wave along one of the projected paths. The significance of the triangle is that the wave 2 was a straight ABC correction and based on Elliot waves law of alternatives this count is more likely to be correct.
"Corrective waves 2 and 4 alternate in pattern" - BASIC FIBONACCI PRINCIPLES
I will update on where stops will be placed. However, I am going to wait for a definitive break as in this triangle it has been very volatile.
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