Thursday, April 23, 2015
Why I'm hopeful on miners: a chart
One reason I was so hopeful about gold and GDX on my previous post is this:
Instead of breaking down, Barfight CEO Gold is instead threatening to break above the SMA(50).
Which means nothing til it means something. But for a crappy miner like this, with a crappy chart like this, the fact that it's not behaving crappily on the past 2 days' shenanigans in the gold price is positive. Hopefully sellers will eventually tire out and this stock can start going up. I mean, it's not as if they're losing money, right?
In fact, on the US chart above, this is a great place to average down: add to your position today, and use $1.50 as a point where you can stop out if the stock ends up turning down. On the Canadian chart, it's even better: buy below $1.94 and use $1.86 as a stop point, there's a really solid line of support there.
Which is probably why the chart is looking so good to me. So maybe it's not good after all, you never know. Maybe it's just dummies doubling down on BTO that's holding it up.
Now all I need is for MUX to stop sucking too. Their chart sucks more than BTO's.
Oh and Dalradian, which looks okay, just a consolidation, but even still it'd be nice to see these asshats move up for a change.
At least I didn't do something boneheaded like shorting Royal Bank. Eh, Verdmont?
Looks like you shoulda gone long, not short, Verdmont!