Comments: USGL has been horrible lately, with a reverse parabolic arc heading increasingly down in an accelerating spiral that seems unsustainable. $4.50 may prove to be short term support here with a potentially large if quick bounce developing from here. The strange thing is that there really hasn't been any news recently that would explain the selling (other than the drop in gold).
Wednesday, September 13, 2006
Chart of Interest (USGL)
Comments: USGL has been horrible lately, with a reverse parabolic arc heading increasingly down in an accelerating spiral that seems unsustainable. $4.50 may prove to be short term support here with a potentially large if quick bounce developing from here. The strange thing is that there really hasn't been any news recently that would explain the selling (other than the drop in gold).
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2 comments:
Mike - Is there an "arc" tool at StockCharts? How did you draw that parabola? I love StockCharts, but have not been able to figure that out. As for USGL...yikes. When it bounces (tomorrow?) it looks like it will bounce hard, but I would be careful with it, myself...
Paul
Hey Paul!
1. I e-mailed you about the "arc tool". In fact, I copy the chart from stockcharts and work on it in mspaint. For the parabola, I used the "curve" function which isn't available in stockcharts.com (though I love stockcharts.com as well).
2. As for USGL, I agree that it is risky, especially because it is not clear whether the parabola has resolved itself yet. A quick spike down to $4.00 is not entirely out of the question. As you know, when stocks go parabolic, the last few days can make for some breathtaking action. Overall, USGL has been really weak, ever since McEwen's initial attempt at consolidating Nevada fell through, but the company still holds some promise and may be a tempting buy, especially at the increasingly lower prices. I have to confess, I couldn't help myself and built a position in USGL during the selling of the last 2 days.
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