Today I sold AEN.TO – Antrim Energy and closed my position for a 22% profit. I was expecting a quick run to the 1$ level. So far it hasn’t materialized. Whenever a stock is not acting the way it should according to my analysis I prefer getting out. I can always reenter later. It doesn’t really matter if price is higher as timing is more important than price.
You want to be in a stock when conditions are favourable and when the pattern offers decent pressure. That said AEN.TO doesn’t look bad. I am simply being cautious and just in case the stock falls I don’t want to be holding a position while shareholders find out why it is going down. It was also a good opportunity to reduce overall exposure.
QEC.TO – Questerre might be next. Overall the pattern looks great but again I was expecting more of a thrusting move. I am closely monitoring that one just in case something is ‘wrong’. Going below my entry price would be a reason to sell.
Interestingly both stocks have lots of overhead resistance as opposed to the best performers in my portfolio. Stocks like VEN.TO – Ventana Gold and UW.V – Underworld Resources are trading near their respective all time highs. On their way higher there are no shareholders with the urge to sell as nobody is down with their position. Hence the saying ‘blue sky potential’.
Stocks with no overhead resistance most often are the best performing stocks.
Have a great evening!
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