Member Info for eldorado5

Yes MKumar - it does take some logging especially from a charting point of view but generally the charts are similar and follow Gold and Silver. They're not all winners at the moment but when the US elections are all done and dusted I think precious metals will be one of the few sectors that will be positive into year end and 2021. I use HL and IG. Apache - haven't come across Maple Gold mines but will take a look, thanks

Thanks expru2000, I'll take a look

Thanks MKumar - most of my shares are on the US/Canadian/Australian markets. Here goes - Agnico Eagle, Anglo Gold, Barrick, B2Gold, Calibre Mining, Centamin, Couer Mining, DRD Gold, Endeavour Silver, First Majestic, Franco Nevada, Hecla, Hochschild, Impact Silver, Kinross, Kirkland Lakes, Liberty Gold, Lion One, MAG Silver, Medusa, New Gold, Newcrest, Newmont, Northern Star, Novo Resources, Pan American, Polymetal, Sandstorm Gold, Silvercorp, Silvercrest, SSR Mining, Sylvania Platinum, Tanzanian Gold and Wheaton! Call me a Gold/Silver bug!

Yes Tymers - short term anything can happen but I've got plenty of dry powder should the price fall. The strategy of taking out my original capital, keeping the profit fully invested and reinvesting tranches of my original capital again on drops in the price has worked well for me so far and definitely works in trading Gold and Silver. Not for everyone but slowly increasing my holdings in all precious metals shares. If there are no further drops I'm still happy

Well, just as I thought we would head towards the late 30’s in a rising channel, it falls! Psychologically, shares have a knack of testing greed and fear. On the plus side, I had a another nibble at 28p at initial support and will take another nibble if it goes to the fib retracement level (50%) of 25p/26p and a larger greedy bite if we see a retracement (61.8%) to 20/21p. Whilst I appreciate there are a lot of long term holders here (and I am one of them), this is the benefit of taking profit at various levels and having ammunition available when the price dips.
Macro wise – the US elections are sending all shares into a tailspin, so it’s not just limited to Orosur or mining stocks. Gold and Silver are falling, and many commentators see strong support at $1780 - $1820 for Gold, so potentially another 5% lower from here. Orosur could easily see an equivalent fall but I’m not twitchy. I have a smorgasbord of mining stocks that are looking more and more attractive by the day. With Orosur’s fundamentals and the outlook for precious metals very bright with stimulus guaranteed in the US, regardless of who wins, no one should feel too despondent about the fall today.

A couple of observations on the 2-hourly chart.
Volume is not that great and as pointed out before AIM shares are not super reliable from a charting perspective. However, there is a clear uptrend from 5p and a clear downtrend from 45p, meeting at 32p. Immediate support at 28p and resistance at 35p. I’m seeing a rising channel – with the lower trendline from 5p to 33p and the upper trendline rising from 20p to 40p. MACD is neutral and stochastics favourable. We are currently sitting near the lower trendline and 38.2% fib retracement of 30p. If the pattern continues, we could see a bullish flag breakout and arrive at the late 30’s soon. Conversely, a break below 28p to test weak hands again and I’ll be dipping my toe in again and buying more.
I’m a fundamental medium to long term holder for the bulk of my shares and a technical day trader with my initial capital for a bit of fun.

Hi Professor - yes, of course, happy to share my thoughts from a charting perspective. As Tymers says, its not for everyone, but it does help me with my decision making and keeps me disciplined. I use them all the time and cover 30/40 shares and Gold/Silver and currency markets and they've served me well but I don't rely just on the charts. Fundamental news and macro trends are most important. Happy to post updates and welcome any comments when I do as it's not an exact science and always useful to get other people's thoughts

Well, what a week! As time goes by, I feel more comfortable reverting back to the daily chart, as it removes a lot of the short-term noise.
Looks like support is at 28p which lies between the Fib retracement levels of 31p (38.2%) and 26p (50%). Below sits the Fib retracement levels of 21p (61.8%) and 15p (76.4%). I’ll be surprised if we see these lower levels, but I won’t be surprised if 26p is tested again to see how strong our hands are.
On the upside, I note Zak’s comments. I have Fib extension levels (assuming the rise from 5p to 45p and the retracement holds at 28p) of 38p (23.6%), 44p (38.2%), 48p (50%), 53p (61.8%), 59p (76.4%) and 69p (100%). Resistance is at 36p and 45p.
Stochastics on the daily are heading to below 20 (oversold), which for me is more comfortable than the overbought reading we had a few days ago.
Clearly, Orosur will thrive or die via the fundamentals and the Gold price (which are both favourable) and with news out soon, I’m holding strong. Should it dip to 26p or below, I’ll be buying more.

Yes - I tend not to day trade because short term, the price could go anywhere and I'm less trusting of very short term charts. Massive spread on IG at the moment, which may indicate a desire by the MM's to try and slow the advance. Ditto on your strategy - I've got a core position and trading with a small %

I agree karl345345 - 35p was on the cards based on the hourly bullish MACD crossover early this morning. Bought some more - so 2 additional top ups below 30p. Do you think it will dip again?

Hi tom 111 – yes, possibly. They could just be filling a large order or just creating a 2-way market, so they benefit from the volume. Who knows for sure, I certainly don’t!
I liken it to a practice allegedly conducted by JPMorgan after they inherited Bear Stearns’ short position in the silver markets years ago; pummelling the price lower regularly to profit from their paper shorts but simultaneously, buying the physical metal at discounted prices. Paper profit on the way down, physical profit on the way up

I would strongly recommend all on this board to take some time to read the following, written by a market maker and helps to illustrate the current market action:

https://tickerjunkie.com/market-maker-speaks-ways-market-maker/

That drop to 24p reminds me of many instances this has occurred in the Gold and Silver markets. Often blamed on fat fingers or algo's going awry but invariably the market then heads that way to test weak hands and to see where the support is. Anyway, thanks Mr Market, picked up a few more at lower levels:)

Hi KB007 - no, my recent observation related to the hourly chart. Do you see anything different?

I'm not really interested in daily predictions tbh mickey1122 as it's all short term noise. My observation on the hourly chart is that we have tested 45p twice on the upside; seen a bearish MACD crossover sell signal at 43p and tested 32p on the downside. If we're in a 32p-45p trading range, I see that as a healthy consolidation, enabling everyone to either digest their gains or accept their losses. Sometimes a big pullback to create the rocket fuel energy for a slingshot to get past resistance is needed. At the risk of incurring the wrath of the bulletin board, I'd be happy if the share price fell to 30p as I think that would ignite another good rise and I'd consider deploying some more funds into it at that point. Market makers will swing this share both ways, sometimes to the extreme, to create liquidity

Hi Mickey1122 - I use charting as a risk management tool and it helps me to determine support (potential buying) and resistance (potential selling) levels. Shares don't go up or down in a straight line and whilst the fundamentals for Orosur are very positive, there will be lots of day traders and investors using these levels to gauge where to buy and sell. It's not for everyone but after trading Gold and Silver for 20 years or so and witnessing both euphoric and butt clenching moments in equal measure, I've become a much better investor by using a disciplined risk management approach. Like you, I hope the price ends the day at 45p but I'm also prepared and have an action plan for 30p

Hi Karl345345, yes I used 5p - 45p and I agree, I don't think we'll see 30p in the short term but like you, if we do, I'll start backing up the truck

Correction - Hourly should read daily

For the chartists amongst us, on the hourly chart we've had 2 attempts now to exceed 45p and now back to the 1st Fib retracement level around 35p as current support. They'll be buyers at 45p feeling stranded at the moment and it could be some of these that have sold. Equally, they'll be others who have seen the double top at 45p and may also be exiting. Further Fib retracement levels are 30p (38.2%) and 25p (50%).

If 35p holds and we can get through 45p, we'll be looking at Fib extensions to initial targets of 50p (38.2%) and 55p (50%). Nice round numbers. RSI for me is still indicating overbought but I'm pleased that the price is not outside the upper bollinger bands, indicating that a more steady rise may be in the offing.

Yes it has. This is a healthy pull-back that releases shares for stronger hands. MM's will play this until further news comes out but the fall from 45p will mess with those investors heads who bought at that price. I'm holding strong but know that these support levels could come into play