Metanor Resources Inc. needs to hold support at $0.48

Aug 20th, 2010 – 2 Comments

    Lou, Wondering if you may be able to provide your insight into Metanor Resources. Producing, awaiting 43 101, infrastructure value worth more than the stock. On a weekly chart looks like a head and shoulders but this one is making me break all trading rules of being a wise and discreet. Your help […]


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Metanor

Lou,
Wondering if you may be able to provide your insight into Metanor Resources.
Producing, awaiting 43 101, infrastructure value worth more than the stock.
On a weekly chart looks like a head and shoulders but this one is making me break all trading rules of being a wise and discreet. Your help would be appreciated.

Regards

Rob

Hi Rob,

When you say that you are breaking all the trading rules it seems to me that  you have fallen in love with the story and that can be a dangerous emotion when it comes to having your money at risk with a junior exploration company.  The story about production, a pending resource estimate, and the value of infrastructure, are all well and good, but if the stock is heading south it tells me that your good loving has gone bad! Lets examine the charts for a better picture of where Metanor Resources Inc. ( MTO TSXV)  may be headed.

 

 

MTO

The three year chart indicates that MTO is holding onto support at $0.48 and that none of the news releases about producing bars of gold or private placements in the last three months have been able to move the stock higher. Currently MTO is trading below its 50 and 200 day moving averages which would suggest a cautious approach.

At this point if MTO doesn’t hold onto $0.048 it may have to retest support at $0.40.

 

 

 

MTO2

The six month chart illustrates the break below $0.56 which started in mid July taking us to these lower valuations. The RSI and MACD both generated signals that the momentum was shifting to a sell off.  Currently the MACD does seem to be signalling a turn which could provide a trade back towards the $0.56 range.

I had a look at the weekly chart and couldn’t make out the head and shoulders pattern you mentioned. But I have to admit I often miss that pattern unless its as clear as all get out.

I would say that at this point you want to go back and figure out why you are breaking your own rules and see if it has been justified. Most often we break rules because we are in denial and do not want to accept what is right in front of us. What we can not deny is that MTO has been selling off and may catch a bounce but that’s not saying its going up and making you money.

 

Happy Capitalism!

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