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File photo of gold bars.

LISI NIESNER/REUTERS

In mid-2010, AuRico Gold Inc. (previously Gammon Gold) declined to form the second bottom of a large "W" formation (A – dashed lines) and then began to rise above its 40-week moving average again (B) to reach a recent high of $14 (C). This confirmed the breakout from the bullish "W" pattern, which supports significantly higher targets. The current price correction should provide an excellent entry point. Only a decline below $9.25-$9.50 would suggest a trend change.

Point & Figure measurements provide an initial target of $15. The large "W" pattern supports significantly higher targets.





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

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Chart source: www.decisionplus.com

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About the Authors
Senior Technical Analyst at Phases & Cycles Inc.

Monica Rizk, Senior Technical Analyst, has a Bachelor's degree in Business Administration and completed the Canadian Securities Institute course. She has been with Phases & Cycles since September 2000 and specializes in the research of Canadian and US stocks using Point & Figure as well as bar chart analysis. More

President of Phases & Cycles Inc.

Ron Meisels, President, Phases & Cycles Inc., has been active as an Analyst since 1971. He was Vice President and Director of Technical Research of Nesbitt Thomson (now BMO Nesbitt Burns) from 1982 to 1990. He was ranked among the top three technical analysts by Canadian Institutions for six consecutive years (Brendan Wood Survey). More

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