If you look at the RGR chart there is a break below the lower trendline. Also there is a recent double top M pattern. Both bearish signals.
If you look at RGR's 1-year chart it tends to follow TA pretty closely with reversals at bearish and bullish engulfing. Remember guns were still selling like hot-cakes during the May 2012 drop from $58 all the way down to $36. IMHO sell RGR now and buy back in around $37 - $40.
By the way, what you said in your post two days ago about the trendline having been broken was NOT correct. It's not a very well established trendline but it was not broken until yesterday on an intraday basis and RGR bounced off the 50sma only to close just at or above the trendline. If you're going to use TA you need to at least be accurate. Also, fwiw the 50sma was essentially not broken yesterday, but served as possible support.
We know that now that you have jumped ship into the water you want to bring it down so you have some flotsam to cling to.
Captain, with all due respect it most certainly did break below the lower trendline and there is most certainly a double top. I would post the TA if I could figure out how to do it on this site. What created the bounce was the NYC shooting, sadly. The mayor has been calling for gun control for a while now. I'm simply posting my opinion that RGR is trending downward. You are correct that I did jump ship. Forgive me if I'm not into losing money by hanging onto a declining stock! The chart TA was looking ugly. I am looking for a new entry point. Next week will tell if you are correct or I am.
All I know is more and more folks around here are buying guns and getting training. I wonder if we are at the start or near end of the trend?
very informative board, been reading for a while and thanks for the info!
In comparing this pullback to the one post Q1 report you fail to recognize that the market conditions are entirely different now. We WERE in the middle of a market pullback then, whereas now we've just been told that it's fairly certain we're getting QE3. Just look at gold, silver, platinum, and to a lesser extent palladium.
Also, RGR the stock is different now, because we were still in the middle of a RGR order taking suspension and the hope was that they would start up again sooner than they had stated and the fear was that they wouldn't be able to find a way to ramp up production levels. Now we have reported yet another blowout Q2 and management is actively making progress in the production area. I'll put fundamentals above "TA" any time. Not that I don't use TA, but when I do, I don't kid myself that it is much better than tea leaves. You're trying to predict the future by looking at what happened in the past. It's a fundamentally flawed process.
I think the downside from here should be fairly limited. In picking 37-40 you are basically just throwing out some numbers that sound nice. This is a small cap stock that is in a politically charged sector, so swings can be more violent. Everyone has to consider their own situation as far as how much of their portfolio is tied up in this and their breakeven, etc. GLTA.
I see why so many people lose money in the Market. I've only been doing this full time since Dec. and I've been making ok money since May.... the thing is: you can pick a good company, and you can pick a good price, but you can't time the market. This is a good company, anywhere around this is a good price. It will come back. I've made more money off this one stock than any other....