Please take a look at a 1 year chart of RBY. There were several $4.00 floors put in (Sep 09, Oct 09, Dec 09, Feb 10) prior to today. Now, the stock is falling on heavy volume well below $4.00.
I'm warning people now that this chart looks like it is ready to fall off a cliff. I've seen charts like this before.
Also, the chart features lower highs and lower lows. I wish this wasn't the case, but it is.
Disclosure - I own over 10,000 shares of RBY at present.
Does anyone disagree?
check the chart for the fall of 08 45% drop hugging the lower bollinger band and under the 3 m averages...maybe not so bad now but a sign of caution...but in this room anyone who doubts is denied...does anyone know who is dumping this stock? could be someone important...but who?
If chartists were usually right, they'd be so rich that they wouldn't have to bother with charts anymore.
I made up a little rhyme. Must've been inspired by the kid Lol!
When all the chartists are forecasting bad luck,
Its time to back up the truck!
Anyone who has been around gold stocks for a while knows that gold charts always get busted, it is their nature to be almost perpetually busted. They are sorta like shipwrecks about to decay and fall apart then when you least expect it the sails fill and they advance several miles then bang they wreck again. The time to be worried is when they aren't busted because another wreck is coming its just a matter of time. The time to be buying is when they are falling apart. I understand this is difficult for most people to comprehend but darn it that's just the way it is.
Its still holding its 200 dma, and all the other gold stocks are doing the same thing. If it was just RBY I would be concerned but it is all of them. So, I would say the chart is 80% broken. On the positive side, it is VERY oversold AND it held the 200 DMA and the entire sector is being hit. It has had a huge run and this may just be consolidation. Obviously, with all the volume, somebody is accumulating. I know I am, I have been waiting for a pullback to buy more and now am finally getting it. If gold keeps going up, eventually RBY will too. I would rather pay $3.86 then $4.50 and $5.
What was amateur about my post? Have you looked at the 1 year chart as I asked? Are you in complete denial?
I invested over $50,000 initially in RBY. It's now worth $39,000. Sorry if I'm conversing with a billionaire, but that's not chump change to me.