Percentage of outstanding shares shorted of the 10 most shorted gold stocks. MUX 14.1%, Seabridge 10.4%, Nova Gold 9.7% Tanzania Royalty 6.5%. The remainder of the top ten go from 2.5% down. If this price isn't a buy in short to medium term, What is??? It's easy to get frustrated with the price drop but it's on half off sale with no bad news and spot gold holding. The oil company nationalized recently has no lasting negative on Argentine gold miners. It's apples and oranges. Count on it.
"H&S targets won't fruit against the sector trend. I chart many, many PMs and there are PM equities with H&S targets less than zero."
True..I've noticed this as well..It's pretty accurate on some, but others like you said give numbers less than zero..There's been a few whee it was spot on and others not so well..We'll see what happens with MUX.
Here's a guy who, most likely, knows what happens next. If your short, you better read...
'The other thing that concerns me on MUX is the BIG head and shoulders top that formed between late 2010 and late sept. 2011;
whitesands, anything is possible, but I don't put too much stock in that weekly "H&S".
H&S targets won't fruit against the sector trend. I chart many, many PMs and there are PM equities with H&S targets less than zero.
After the 2008 lows, I learned my lesson trading options based H&S's in the run up. Lost nearly all of those.
$Gold, $Silver and the $USD will decide the relevance of a MUX weekly H&S. IMO, better TA is seen in MUX's daily chart, right now showing an ABC down target at 3.16. There is a rising trendline at 3.24 on the weekly chart that may prevent the 3.16 fulfillment, depending on the gold/silver/usd action this week.
The most important chart underlying all of this, is this one....IMVHO.
You make a good point on a capitulation...The other thing that concerns me on MUX is the BIG head and shoulders top that formed between late 2010 and late sept. 2011...The measured move suggests either $2.50 or $1.50 for MUX...Those two figures are used because the neckline could be placed in two possible locations...Not to mention the head and shoulders on the HUI...
Unfortunately it looks like MUX still has lower to go....Low volume today with trading range shrinking creating a pennant...I'm expecting another sharp move down possibly as soon as next week.
where is the bottom? that is the question. are you brave enough to buy today? were you brave enough to buy yesterday, or last week, or last month? ifyou were, you would have been wrong each time. what makes you think that now is The Time?
Fidelity only transferred me into MUX just last week even though I've been on their case since the merger. I haven't been able to buy until now. Just lucky perhaps. So far MUX seems a lot like my old Mneaf with even wilder swings than other wild swinging gold stocks. Yes I bought (today) as I like buying good gold stocks cheap. It takes confidence to buy on the cheap end so I do it small. Since I missed buying on the way down, today was an exception with a larger buy. I find it more difficult to sell small amounts on the way up but that is the other half of the investment strategy so as to have the cash for when it drops again. It always does. Years ago I used to think that maybe this time rising will be the last train out. No more. You can't lose cashing in profits. Best of luck because luck is involved.
Actually, I cant see where Carlos42948 is advocating MUX one way or the other, hes simply adding relevant short-interest-% facts as it could be a positive event in the near future for MUX and all the other stocks he pointed out and also shrugging off this Argentine oil company nationalized as insignificant, and I absolutely agree with his assessment 100%.
As far as the MUX bottom is concerned, you tell us where its at, seems your bearish on MUX and possibly other equities therefor, you must have an area or a number that's meaningful? Ive been offering the readers my technical point of view, can you add some positive content at all?