I've got a gut feeling we may have seen the low on AZH. Aside from a gut feeling, I can't point to anything on the chart other than the fact that AZH last week broke through its downtrendline from the 99c peak. Until today all it had done after making that break was go sideways - hardly convincing - and I would have discounted the break had AZH gone through its 33c low.
But I think things may have changed today. The 33c low held, and by any measure we had a decent upward move. Volume wasn't exceptional, but it wasn't bad either.
I put my money where my mouth is and bought some more at 36c.
Has the gold bull run its course? I don't think so. I'm not seeing any signs of keynesian policies going out of favour. So my guess is that at some point we'll see promising companies such as AZH have a crack at their highs.
But trying to pick bottoms is a risky game and I'll certainly be lightening my position again if 33c breaks.
AZH Price at posting:
37.5¢ Sentiment: LT Buy Disclosure: Held
