Aurora Energy Res. Inc. (T-AXU)
At it's high Aurora was a $20 stock in May of 2007. It just touched the upper end of being a penny stock in this uranium stock massacre but has recovered with a vengeance. Except for the relatively low volume, this is the kind of action that I like. A sharp advance, implying a new direction. Several days of consolidation of the sharp move and then followed by a new move to higher ground. My way of addressing such action is to hold off following the sharp move, after all, too often it is a come-on to fool speculators while professional players want to sell out. It’s the action AFTER the sharp move that one should watch. You expect a consolidation. After the consolidation, if the price moves ABOVE its sharp move high that then greatly reduces the risk of reversals. That is what we have here.
Everything, from a simple technical perspective, is positive. The price is above its positive intermediate term moving average line. The momentum is in its positive zone above its positive trigger line and the volume indicator is moving nicely higher above its positive trigger line. The only concern is to see some continuous high upside volume action. The other concern for a technician is the price “gap” that was developed on the day of the sharp upside action. Often such gaps are “covered” by the price moving down to the lower end of the gap, which in this case would be to the $1.25 level.
Ordinarily, this kind of action would be favorably viewed by technicians EXCEPT that the action was based upon the announcement that Fronteer Development was planning to make an offer for Aurora stock. Any such development can eventually go either way and therefore is a very risky venture for those who come in late. It is interesting to note that the Fronteer price has dropped sharply since the announcement. What will happen is anyone’s guess.
Technically this kind of price action should indicate continual upside price movement BUT with a take over in process ANYTHING can happen. You pays your money and you takes your chances.
At it's high Aurora was a $20 stock in May of 2007. It just touched the upper end of being a penny stock in this uranium stock massacre but has recovered with a vengeance. Except for the relatively low volume, this is the kind of action that I like. A sharp advance, implying a new direction. Several days of consolidation of the sharp move and then followed by a new move to higher ground. My way of addressing such action is to hold off following the sharp move, after all, too often it is a come-on to fool speculators while professional players want to sell out. It’s the action AFTER the sharp move that one should watch. You expect a consolidation. After the consolidation, if the price moves ABOVE its sharp move high that then greatly reduces the risk of reversals. That is what we have here.
Everything, from a simple technical perspective, is positive. The price is above its positive intermediate term moving average line. The momentum is in its positive zone above its positive trigger line and the volume indicator is moving nicely higher above its positive trigger line. The only concern is to see some continuous high upside volume action. The other concern for a technician is the price “gap” that was developed on the day of the sharp upside action. Often such gaps are “covered” by the price moving down to the lower end of the gap, which in this case would be to the $1.25 level.
Ordinarily, this kind of action would be favorably viewed by technicians EXCEPT that the action was based upon the announcement that Fronteer Development was planning to make an offer for Aurora stock. Any such development can eventually go either way and therefore is a very risky venture for those who come in late. It is interesting to note that the Fronteer price has dropped sharply since the announcement. What will happen is anyone’s guess.
Technically this kind of price action should indicate continual upside price movement BUT with a take over in process ANYTHING can happen. You pays your money and you takes your chances.
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