I love it when a plan comes together. Like a trained hunting dog fetching a bird, Golden Peaks broke out Monday perfectly on cue.
I particularly liked the trading action in the early going yesterday morning. The stock behaved admirably, trading several hundred thousand shares early in the day at the recommended entry level before breaking out to a new all time high. As I write today’s BLOG, the stock is trading at $3.30 Cdn, up nearly 14% from yesterday’s levels in the first few hours of trading.
The breakout is confirmed. Here’s the exact same chart I put in the weekend edition, fast forwarded to this morning:
The stock had traded sideways on lessening volume since Mid April. If the uptrend were to continue, the next volume surge should take the stock higher.
The volume surge happened yesterday. Why, I can’t say for sure. Most likely, there were a lot of investors watching for the breakout. Early morning volume from the weekend edition might have served as a catalyst to bring investors off the sidelines.
Now that the stock has broken out, if you don’t own it and want to, I would recommend waiting for mini retracements to get on board.
I am looking for $3.75 to $4 in the short run, much higher in the long run. As it stands right now, I would be very happy selling my 25,000 shares at $4. FYI- I own it at about $2.90 Canadian ($2.62 US).
Comments and questions are welcome.
sounds like you have not contacted the company an know what they may have,Selling at $4.00 isn’t even close to where it can go if they have the goods
Editor: Probably true. Time will tell if they have the goods. I may sell part if the trade gets irresistable and keep some for the longer term.
What’s a mini-pullback? Can you tell me how to contact the company? What’s the float? Can you give me an update on bid&ask this afternoon May 10? Is there a website? Thanks, Bruce Bochman
Editor: A mini pullback would be perhaps a 5% drop from a peak. It’s just a style issue- I don’t like to buy when stocks are chugging north too quickly.
Great pick OTC Journal. After looking into many of your companies, this one seems to have massive potential, way may be looking at a multi million ounce discovery Lots of corporate activity. If they continue to come out with quality results, this could be the perfect storm for great returns.
Editor: Short term I was looking for $4 cdn, and will probably sell some or all at that time. Once I have sold, that is your key to know the stock will be going on to $5 and higher. That’s the unwritten rule of the market.
Thanks for the Tip. This link is for anybody that wants to keep track of the stock. It shows the current price and last 10 trades (15 min. delay). http://www.tsx.com/HttpController?GetPage=QuotesLookupPage&DetailedView=DetailedPrices&Market=T&Language=en&QuoteSymbol_1=gl&x=7&y=8
Editor: Thanks very much for the contribution. This is why I put up this Blog- so guys like you can provide tools that help everyone.
I understand there may be some results coming out Monday…and the market never lies. I think we can read between the lines. http://www.goldenpeaks.com/ Call Mike at Investor Relations….
Editor: The way the stock is behaving, one would think some event is pending. The stock could be trading up in advance of results. It will be far more interesting to see what happens after the results are announced, if in fact on Monday. As I have written many times in the past, big spikey runs based on news, especially when the stock trades up out in front of news, can be selling opportunities. The stock generally makes its high about 1/2 hour after the open if the company announces pre open. If the stock rockets into the $4 range CDN on some news, I will probably sell some or all. If I do sell, I could be looking to buy it back when profit takers are exhausted.
Any new thoughts on Golden Peaks? Bruce
Editor: This was a pretty good momentum stock until everything fell apart in the last couple of weeks. There were some drilling results announced this AM. I am going to get a read on what it all means. However, I am looking for some sort of surge to get out of this one. The volume has simply fallen off a cliff, and I’d rather be out wishing I was in, than in wishing I was out. Will have a fresh BLOG up soon.