|Entree Gold: A Chart View - TheStreet|
|Written by L.A. Little|
|Thursday, 23 December 2010 06:58|
L.A. writes a piece weekly for TheStreet.com and this week's article is reprinted here with permission.
As for the technical picture, their charts are strong. Here’s the daily chart showing a confirmed bullish trend higher with a wide support zone below yesterday’s close. The junior mining stocks were hit particularly hard yesterday and a pullback in the group would provide an entry point in this name.
The weekly chart displays a classic uptrending channel with prices stair stepping higher day by day. There was significant volume coming into the stock last week creating strong anchor bar support. By combining that anchor bar with other visually apparent anchor, one can gain a sense of just how far this stock could fall and still be quite bullish. That’s the risk side of the equation.
The reward is the potential for Entrée Gold to break much higher. Here’s the long term chart showing the volume buildup as prices eat into the resistance zone of years past. There is nothing to stop this stock from really taking off if it eats through resistance here. This is a long term picture though and that means that you need to work your way into a reasonable position with the idea that you can trade the name for months to come.
In trading, nothing is for sure. Given that this is an exploration play it certainly isn’t a lock. It does show all the signs that you want though to provide the confidence that it has a good shot to break higher – appreciably higher. That’s the best you can ask for and is why I have a position in the stock.
Until next time, just keep trading the charts!
|Last Updated on Thursday, 06 January 2011 11:23|