GRY to find support at 20c

Gryphon Minerals is looking like a good turn-around story. I originally purchased these at 18c; they were oversold to 13c, at which point I bought a lot more. Now they have in the last few days reached 25c, at which point I sold half, because they were at resistance, and they were trading well-above their moving average. They did publish great drilling results, but the 'high grades' were 'consistently' over just 1-metre wide drill sections, so not so great. They look more impressive when the company averages them over a wider interval, but my thinking is that wider mineralised zones are more likely to be pervasive and thus 'continuous', or sustainable if you like it. This type of news is like an orgasm, so the response was analogous. Regardless, its a good company. On Friday they were sold down to 20.5c, where I had a buy order ready to re-enter the stock...here's why. Resistance on the upside becomes support on the downside. That is pretty strong resistance, so I expect it to hold. The fundamentals of the stock remain very good, even if gold price is vulnerable in the short term. The gold price is on the top-end of a down-trend, so I believe it will fall in order to test its previously established support, as well as giving further support to the long-term uptrend. That would offer another long as well as short term buy point. I'm in at 20.5c for short term trade, whilst retaining stock for long term.When you have supports like this; they can under-shoot, over-shoot, or touch the support/resistance. I like to buy some before, after the support. It touched on Friday, and it will probably do the same today. We might then expect a rally off that support. Just watch that gold price! Not to worry, long term looks good. If you are busy, don't place yourself in psychiatric ward by trading in lunch hours.

Asian property markets outperforming Japan Foreclosed Guide Philippines Property Guide
Profit from mining with Global Mining Investing eBook   Global Mining Investing Community.

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com