Was watching Canadian Biz TV and a guy who makes a living promoting junior miners was talking about GIX on the Canadian venture Exchange. He talked about lots of stocks but this one seemed the most interesting.
I woke up the next morning to see that the stock had shot up on his words....but rather than kick myself for missing out on the move, I noticed something really interesting starting to set up on this thing....
If physical gold pulls back a bit in the next little bit from the 780-790 range -- or for some other perfectly sound reason, this stock cools off and pulls back from it's recent highs after touching near it's previous high, this is one I'm goin to be watching.
While the volume didn't die out completely, this is a "decent" little cup formation on the back of an explosive upmove....If the chart for whatever reason creates a nice little trough (or "HANDLE") to aforementioned cup it could be setting up a nice little trade.
The idea is that you'd want to buy the stock at the point it broke through the point of resistance...one can often get a quick 20%+ on such a setup
I'll keep you posted.
ciao,
fubarrio
1 comment:
p.s. since i wrote this i notice that gold has "crashed" down 7 bucks to 777ish on the spot chart.
the anticipation is that the fed will lower rates tomorrow.
i suspect (believe it or not) that regardless of what the fed does, short of moving interest rates to zero we could see a pullback on gold over the next week or two or three.
however, i'm not confident enough to try and trade it on the downside!!!
i will be waiting to pick up some more if it gets to low 700's and again in the 600's if it dares to swoon so.
ciao,
fuBarrio
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