Ventana Gold Displaying Impressive Strength

by Olivier on June 15, 2009

Today was an ugly day in the markets. That’s part of the business. There was no place to hide. Well, almost no place I should say. At the end of the day VEN.TO – Ventana Gold managed to stage an impressive rally. This is even more impressive considering how bad most gold mining stocks did today. There is much talk on the boards that GSL.TO – Greystar Resources might be the better place to put your money into and that VEN.TO is ‘overvalued’. The truth is the charts say otherwise.

To me charts are objective. They are like facts I can analyze. The beauty of technical analysis is that you don’t need to rely upon anybody. Does this mean charts are the holy grail? No. It is simply a means of putting odds in your favour. If you stick to discipline, over time listening to the charts will pay off. You can use technical analysis as your main tool or as an additional tool if you are more into fundamental analysis. Whatever works for you. My point is: In any case you’ll be better off if you listen to the chart’s message.

That said VEN.TO – Ventana Gold’s technical action today has very bullish implications. It displays all the typical characteristics of a winning stock. Odds are very high there is still more to come. I am now closely monitoring all my positions and as soon as I see great weakness or think I’ve identified a weak stock I will reduce my positions or sell the stock in question. If you have trouble sticking to mental stop losses put in hard stops. In the long run your winners will more than pay for your losing positions. Again the lesson is:

Stick with your winners!

Have a great evening!

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