Ron Meisels And Monica Rizk

17:24 EDT Friday, September 04, 2009

Eldorado Gold Corp. built a large base made up of higher highs and lower lows (see dashed lines) from 2006 to 2008. In late-2008, it had a sharp rise from about $3.50 to $11.90 that clearly brought the stock out of its base-building phase (A-B). The stock then settled into a wedge pattern made up of higher lows and lower highs (see dotted lines) while the 40-week moving average “caught up” to the price. The recent rise to $12.37 signalled the breakout from this wedge formation. Only a decline below $9 would reverse the current upside potential.

Point & Figure measurements provide targets of $14 and $16. Both the large base from 2006 to 2008 and the recent wedge (see dotted lines) support higher targets.

Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.

Source: www.decisionplus.ca