Rare Element Resources RES (TSX-Venture) – About To Print New All Time Highs

by Olivier on July 15, 2009

Today I bought RES.V – Rare Element Resources in order to increase my overall exposure to REEs – Rare Earth Elements. My original plan was to add to AVL.TO – Avalon Rare Metals but I changed my mind. I decided to deploy my funds into the two stocks I consider to be the leaders in the Rare Earth Elements sector. This approach is less stressful as it is still very early in the game and that way I don’t need to bet on one horse exclusively. Over time one of the two stocks will start to outperform the other. I have no clue which one will end up being the winner and I couldn’t care less. The charts will tell the story.

As far as the technicals are concerned RES.V is within striking distance of its ATH (all time high). Stocks trading near their respective ATHs are by definition strong stocks. The gap up was a breakaway gap which implies we are just starting a meaningful thrusting move to the upside. Right now the stock is trading within an ascending triangle and I think odds are very high it will break out to the upside pretty soon. Overall this is a very strong stock with a very bullish technical setup. Technically speaking it is even stronger than AVL.TO as it has almost no overhead resistance. Make sure to read the article I wrote about overhead resistance if you are not familiar with the psychological implications of that concept.

I think in the near future a 2.50$ price target for RES.V is reasonable.


BXI.V – Bio Extraction hit the technical price targets the ascending triangle was suggesting. I sold 1/3 of my position into strength @ 1.15. BXI.V has almost tripled since I entered @ 0.45. Taking some money off the table. No need to get too greedy. I will look to add to BXI.V when it builds its next consolidation pattern. I don’t care which price level it will be trading at as timing is more important than price.

VEN.TO – Ventana Gold went crazy about 15 minutes into the close. We still have to wait what those next drill results will be like. Then again if the results are good odds are high this stock will go parabolic.

Have a great evening!

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