dingo/rakia Dingo and Rakia
5 out of 6 stocks that I currently hold were bought on a T/A basis. That is normally the basis of my trading. In the last 6 months or so, I have started researching (well, trying to) and buying some mining stocks.
I am particularly looking at explorers, not yet in production, as they offer far more leverage, but obviously they are far riskier.
After doing backtesting on a number of juniors that had success, I soon discovered that it is very hard to look at the chart of a stock that has little liquidity and use indicators to try and determine the "health" of it. While positive announcements mostly affect a companys share price, I think we'd all agree that when a junior hits something of note, the way that this stock is traded quickly changes, hence changing the nature of the chart.
two stocks, JAK and NWE (junior oiler) have particularly caught my eye and I have to say that although the chart of JAK looks rubbish, a word with Andy Viner (company MD) and a look through the last couple of announcements will more than likely get you to put JAK at least on your watchlist.
I have found that volume spikes on relatively illiquid stocks are a good way to see if something is going on behind the scenes. I've had many successful trades where I've bought in following a spike, then a positive announcement comes in.
Anyways, rambling on now. Point is, giving a T/A viewpoint on a stock like JAK doesnt really work for my mind. And for the record, I dont actually think the daily chart looks that bad.
Cheers
Marchello
JAK
jackson minerals limited
