Monday, January 13, 2014
Rio Alto continues to not suck all of a sudden
Here's Rio's chart:
I've kinda given up drawing lines on charts, as you probably noticed.
But this looks to me like an inverted head & shoulders, with a small right shoulder (beginning of January) that's been built on high volume. So I guess it's a lock that this would go to target, which is somewhere around $2.20 or so.
That would be about a 20% win, which is exciting enough for me to already have a position in Rio and for me to want to even buy more.
I mean, why own a Europe ETF (which I do) or a US banking ETF (which I do) over the next month or two when I can make 20% on a miner?
Unless I think gold could drop from here. Which I don't. But if I did, I'd be more cautious about buying Rio.