Speculating On The Ring Of Fire

Jul 24th, 2009 – 1 Comment

  Hi Lou Always appreciate your comments, would love to hear your feelings on Noront Resources. It’s  on a bit of a tear, does it have legs? Thanks Brian   Hi Brian,   Noront Resources Ltd. ( NOT TSXV)  is an exploration stage company active in the Ring of Fire emerging metal district of  the James Bay Lowlands in […]


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noront

Hi Lou

Always appreciate your comments, would love to hear your feelings on Noront Resources. It’s  on a bit of a tear, does it have legs?

Thanks

Brian

 

Hi Brian,

 

Noront Resources Ltd. ( NOT TSXV)  is an exploration stage company active in the Ring of Fire emerging metal district of  the James Bay Lowlands in Ontario. The stock has moved aggressively over the last week making your question a good one.

 

not

The three year chart shows support in the $0.55 -$0.60  range and when the stock hits that level buying comes back. Last week the volume was very strong.

I surveyed the bull boards and there was lots of yak suggesting institutional buying and incentive to follow the big boys with buy orders.

Last week the company issued a press release stating that there was no material event to report that would have contributed to the spike in the stock.

 

 

 

 

 

 

 

 

not2

The three month chart shows the RSI indicating that the stock is overbought and that the MACD is turning down.

There does appear to be a pennant formation on the chart which is a continuation pattern. Typically a pennant will break to the upside but its not a guarantee that it will. If it makes the break there isn’t a lot of resistance to hold it back.

The management at Noront will spend $19 million this year  drilling up their targets in the Ring of Fire  and advancing the scope of the deposits they are delineating.

They do not have a mine and they do not earn income extracting metals from the ground.

The stock moves based on news releases issued by the company and on speculation based on real or imagined outcomes.

If  you want to speculate on the shares of NOT continuing its up trend based on the pennant pattern put at stop loss order in at $1.20. If it doesn’t hold $1.30  and makes it to $1.20 there isn’t lots of support to keep it from falling to $0.80.

 

Happy Capitalism!

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