Monday, March 17, 2014

DPM's chart: broken or not?

Here's Dundee Precious Metals' chart:

It seems to have run into a wall in the $5.40-$6.00 area, and has now collapsed below its EMA(16) and gone -2SD.

So is the chart broken?

Well, an obnoxious TA would say there was a needed gap fill in the $5-$5.40 area, and it's now filled that gap, so it's not a sell.

Then again, it ran up 100% since December, and might be able to sustain a fair bit of profit taking. If there's a cup & handle here, the handle is maybe broken.

My long-standing (and generally uninformed) opinion is that it's a company full of garbage assets, but with the mining expertise to make those individual pieces of garbage turn into gold when working together. The people running the company are boring as hell and that's a good thing because it means they're engineers.

I'll hold on to my tiny position for now, with the understanding that it could still really frickin' kick me in the teeth over the next few days. Who knows? Maybe some newsletter called a sell this weekend, and the bots who populate the DPM order book have forced the muppets to sell at a 10% discount cos that's what the bots have always done with this stock.

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