good call you made here nord even before the change in gold sentiment. Calling it based on cash position worked well.
Just thought I'd follow up with my OBV chart for interests sake.
The bottom in the life of trading OBV seemed to mirror the bottoming of the share price pretty well and it is just now approaching zero again. You mentioned most gold stocks would look similar. I've put the NCM chart below just for comparison. It made its bottom a lot earlier near the end of 2013. I know you aren't keen on this metric but in terms of picking changes in direction in long run share price cycles it could have some merit. People buying NCM when the life of trading OBV crossed zero would have entered the stock at the end of 2013 in the $9 range.
RRL is about to cross this zero line which judging by NCM's performance since crossing would be a good long term buy signal. I'm not buying RRL but I'll keep an eye on this chart over the next few years to see if this signal works in RRL's case as well as NCM's. I'd say it works just as well for the top as the bottom in a bull cycle scenario. Although if you look at both chart the turning point at the top would have had you missing out on the last share price highs for both RRL and NCM at the end of the bull cycle. It would have pulled you out just before the top but near the top nethertheless. Many people rode these stocks down. Bailing after a clear turn on the life of trading OBV would have saved such people and preverved their big profits. Eshmun
RRL Price at posting:
$2.12 Sentiment: None Disclosure: Not Held
(20min delay)
