With all due notes that we are very overbought with MOMOs and FOMOs all over the sector, on the chance that this bull is ongoing and that people are accumulating, here is a “buy the pullback” setup on a gold stock that I own. Indeed, I had forced myself to take a partial profit on it and bought those shares back today.
Gold mine developer RIOFF (RIO.TO) has pulled back over the last couple weeks after making a high of 1.39. It is stabbing the 50 day moving average. I don’t see any news that would drive it down. That doesn’t mean there is no news. I just don’t see it at Rio’s website. What I do see is Rio2’s recent inclusion to the senior TSX index. That’s not nothin’, in my opinion.
If the stock loses the 50 day average there could be something uglier going on here. But frankly, I wish more gold stocks were as intimate with their 50 day averages, because they’ve gone too far above that intermediate trend marker.
RSI and MACD are pretty gross. But I added back my shares and decided to present this as an example of buying a pullback within a bull market trend.
[edit] I originally posted the US listed OTC chart. But am replacing it with the nice and clean TSX listing.
Thanks for the heads up. I was looking for a good reentry point. Missed recent RIO.V to RIO.TO change.
I missed it too, TTYTT. I just noticed when I took at a look at Rio’s website to look for news.