RGX.V Argex Mining – Titanium Vanadium Stock With Bullish Volume Trading Pattern

by Olivier on February 23, 2011

Today I got stopped into a new position. I wasn’t in front of my screens at the end of the day so I put in a stink bid for RGX.V – Argex Mining, (formerly ‘Argex Silver Capital’) which was executed @ 0.69 CDN$. I usually don’t make extensive use of placing bids below the market while I am away from my screens. On rare occasions though I do and sometimes I get stopped into a stock. I usually don’t post trades that are not easy to replicate. LNG – Cheniere Energy is a recent example how I try my best to enable my readers to actually replicate most of my trades without greed and the need to chase. In that particular case everybody who bought into LNG ended up paying less than the 5.50 US$ I paid. Sometimes it is more difficult. That being said, if you closely follow my public list, my interest in RGX.V – Argex Mining shouldn’t come as a surprise as the stock has been part of 2 sector overview charts for quite some time:

RGX.V Argex Mining Titanium Vanadium Iron Magnesium Technical Analysis Stock Price Target Volume Chart Pattern Bullish

Up-to-date RGX.V – Argex Mining chart on my public list.

As you can see in the chart above, click to enlarge, the volume pattern is extremely bullish. The recent volume surge is a sign odds are high something significant might be going on with this stock. It sure has the looks of a game changing event. A sound technical entry is to buy the first meaningful pullback after a thrusting move accompanied by huge volume. What is very encouraging is the fact volume is now decreasing while the stock is pulling back. My stop loss is very wide as the chart tells me a special situation might be in the making. The stock is just being discovered and breaking out of a long and sound base. I want to give the stock enough room to breathe without running too much of a risk of getting stopped out. My position is a bit smaller than usual which allows for this kind of stop loss. If the stock acts right I might increase my position, but I am not sure yet.

Don’t chase the stock up in case it rockets higher. Keep in mind the stop loss you use must fit your personal risk tolerance. If your entry doesn’t allow for a sound stop loss it is best to pass on the trade and wait for a better entry or focus on the next opportunity. Remember: The next opportunity is just around the corner.

www.argex.ca : TSX Venture RGX Argex Mining Inc. is a junior titanium, iron, vanadium and magnesium explorer with projects in Quebec, Canada. Headquartered in Montreal, Quebec, Argex plans to rapidly advance towards production at the 100% owned La Blache deposit located near Baie-Comeau, Quebec. Argex also owns 100% of the Mouchalagane Iron Ore project, located 300 km north of Baie-Comeau, Quebec and this project is of the same deposit type as ore bodies currently being mined by Quebec Cartier Mining’s (Arcelor Mittal) Fire Lake Mine and Consolidated Thompson’s Bloom Lake Mine. Recently, Argex expanded its land holdings near Baie-Comeau, Quebec surrounding Consolidated Thompson’s Lac Brûlé Titanium-Iron-Vanadium deposit.

The only function of economic forecasting is to make astrology look respectable. – John Galbraith

My public list with all my charts can be viewed here:

Buenas noches!

{ 1 trackback }

Comments on this entry are closed.

Previous post:

Next post: