Rubicon Minerals Corporation hasn’t washed out the sellers

Oct 22nd, 2014 – 1 Comment

The six-month chart points to a tenuous hold on support at $1.30 and nothing much in terms of support below it until $1.20.


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RMX LOGO

 

 

Hi Lou,

Just a quick question.

What would you recommend, for someone who was interested in a buy at this point on RMX, would you say its a big risk, due to gold and economy issues or something to consider looking 3 months ahead ?

Just not sure about the market with mining but I like the company just not sure if I buy now and it dumps another $.30 cents in 2 months or it jumps $.30. The question we all have in stocks I guess.

Best,

Dean

 

Hey Dean,

 

Thanks for the assignment. This will be the third time that I inspect the particulars associated with Rubicon Minerals Corporation (RMX TSX). The last time was on August 15, 2014 for Jeff. The shares were trading for $1.47 and Jeff had bought in at $2.12 for his retirement account. The research conducted on his behalf indicated that the stock was in a downtrend but did offer trading opportunities for investors who could identify buy and sell signals and act on them.

RMX has been developing their Phoenix Gold Project in the prolific Red Lake, Ontario district. The company’s website is still holding on to projections that potential production could begin in mid 2015. The Phoenix Gold Project is forecast to  produce 165,300 ounces per year over its 13.25 year mine life. The estimated all in sustaining cost per ounce of US$870 indicates that the higher the selling price of gold the better the outcome for investors. The October 2014 corporate presentation points to additional funds  needed to achieve the start of production.

An investigation of what is evident on the charts will help you decide how best to proceed with this stock.

 

 

RMX

The three-year chart indicates that RMX is still operating under a downtrend and that it lost ground over the last two months.  The stock did catch a bounce to $1.60 in October but retraced the move in a few weeks. The trading pattern since the last analysis on August 15, 2014 confirms the advice that RMX is a stock that you want to trade until there is better evidence of a trend reversal. Buy and hold has not been a successful strategy for investors in these shares.

 

 

 

 

 

 

 

RMX2

The six-month chart points to a tenuous hold on support at $1.30 and nothing much in terms of support below it until $1.20. What is also apparent is the downtrend that started in July, the break below the 50 and 200-day moving averages, and the MACD and the RSI failing to point to a change in direction. None of these factors are a call to buy a stock.

If your investment horizon is only three months you would do yourself a huge favour by enhancing your pattern recognition skills so you can take advantage of the trading opportunities associated with your investments.

 

Make it a profitable day and happy capitalism!

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