New Gold (NGD) Ascending Triangle Breakout Play
My latest pick is New Gold (NGD). I bought $600 worth of this stock today at about $2.22
UPDATE: Sold for a 5% loss on 5/18/09. Profit thesis was violated as ascending triangle pattern failed to materialize in profits for us within the first 3 days.
With New Gold (NGD) beating analysts estimates and shareholders approving a business combination with Western Goldfields, this stock is a solid fundamental analysis play.
But that’s not why I’m buying.
As you know, I’m not big on fundamental analysis. I don’t put any faith in so called “analysts”.
I look at price as a meeting of minds between buyers and sellers and price history as the psychology of the crowd.
The idea is that we wait until either the bulls or the bears take control, and then we place our bets on the winning side. In other words, we buy high and sell higher. If neither side is winning, we stay out of the market until one side starts to win.
In the video below, I give my real reasons for buying this stock from a technical analysis point of view. Please enjoy the video and give your feedback on our blog. Thank you and happy improved trading.
