Some Chart Perspective Please
posted on
May 28, 2008 07:53AM
Aurcana owns and operates two high quality producing silver mines located in favourable mining jurisdictions: La Negra mine located in Queretaro State, Mexico and the Shafter silver project located in Presidio County, southwest Texas.
Buying and selling stocks can be directly equated to probabilities of success by using all different kinds of time related moving average lines. Although positive fundamentals and croud optimism based upon them keep stocks moving higher, so do the excesses of optimism turn them lower eventually unless there is a takeover or an exploration company unearths a great treasue. Usually, the time to sell, if you are a trader which I am not, is when volume swells along with higher prices as optimism is high and the best time to buy is when a stock is basically going sideways following a decline when pessimism has been growing for a while
AUN's stock is a great buy, right now. If you are long like I am, some serious consideration should be given to adding more shares to your holdings if that is possible during these early stages of inflationary price explosion on our basic needs. The worst thing that a shreholder of AUN could do is to sell their shares to possibly the naked short selling banking divisions of Canadian brokerage firms that may have been pressuring the stock lower over the past months for their greed of immoral profits at the expense of shareholders.
I have done well buying shares of natural resource companies at or near their ascending 1000 day moving average lines for years. If you have access to a professional charting service check out AUN's 1000 day average line or go to http://www.bigcharts.com and plug in a 200 day moving average. It will become a 1000 day moving average on their three year chart when it turns into a 200 week average. When creating a 200 day average for display, go to the box at the top labeled "advanced chart" on the main page that comes up first at bigcharts.com.
Currently, AUN's 1000 day moving average line is at about 58 cents. The stock's current last sale is 58 cents. Back in 2007 when the stock hit about $2 in April the 1000 day average was at about 30 cents or so. The best time to buy stocks is when the opportunity presents itself when this ascending 1000 day average is at the same price as the share price.
I have read some comments on the board in the past that indicate some people's patience is running thin in holding shares of the company. Sure, I don't like to see the stock acting this way either but in order to succeed at making money we must be patient when it comes to letting a stock do its thing prior to getting back in gear and moving higher, which this one will.
There are two kinds of optimism from the perspective that I see things in the market: One is the optimism based on fundamentals and the other is optimism that is based upon proven repeating chart conditions.
I would guess that most people rely on good fundamentals that are based upon news releases and get impatient when there are not enough of them. I don't believe life in the market is that simple. Charts tell me what is going on with important buying and selling interests, this is not something released by company officials. So, we must dig deeper byunderstanding price behavior by the use of recorded price history. Their are many more facets to employ in increasing our odds of success through the use of charts but for now, one of the most reliable long term indicators to me is saying, "buy AUN."
I am currently quite optimistic concerning the prospect of AUN turning around and marching or lurching to new highs in a spectacular fashion.
Go AUN!!