We
went for Blue Moon Zinc again about a week ago, and on Friday it surged by 66%, so that we are up about 90% on the week on this one, and after such a sharp rise, the question arises whether it is time to take profits. Whilst it could rise further of course, there is no harm in taking profits here, especially as there are a number of reasons why it could now react back, perhaps after early strength this morning. The first is that it is now extremely overbought on its MACD indicator and most other oscillators after tripling in price in a month. This alone makes a reaction back more likely. Two other factors making a reaction likely are the big gap that has opened up with its moving averages and more seriously that Friday’s rally halted exactly at the March intraday high and close to the April intraday high, where there is resistance.
Conclusion: considered prudent to TAKE PROFITS on all positions here. The long-term picture continues very positive so we will aim to buy it back on a reaction, if there is one, if there isn’t, we will not lose sleep over it as there is always another train leaving the station.
Blue Moon Zinc
website
Blue Moon Zinc Corp, MOON.V, BMOOF on OTC, closed at C$0.10, $0.0774 on 29nd September 17.
Posted at 8.55 am EDT on 2nd October 17.