We have traded Avivagen well - so far – buying it on 20th February right before it ramped up
, taking profits exactly at the top on 28th
and then buying back on the short sharp dip again on 4th March
. We are up 18% in a week on the last purchase, and yet again it looks like it time to take profits, even though the gain is this time much more modest, for reasons that will be set out here.
A lot of investors make money in the market only to lose it all and sometimes worse by overstaying their welcome so that Mr Market is then able to plunder their hard earned profits. We vigorously try to avoid that as you will have seen in recent weeks. Not all trades work out – we have a losing trade in Terrax Minerals, for example, that we have to decide what to do with, and will shortly.
With respect to Avivagen, although it has demonstrated that it is starting a major bullmarket and is expected to eventually go much higher, it started to show signs of being tired by the end of last week after its big runup to date and in need of a period of consolidation that will probably start with a reaction back. The technical reasons, that we can see on the latest 3-month and 2-year charts shown below, are that it has arrived in a zone of quite strong resistance in a quite heavily overbought state, and the rather weak volume on Friday’s move to new highs coupled with the appearance of a bearish “shooting star” candlestick, albeit a small one, provide clues that it is about to back off. It is thought probable that a trading range will now develop between the approximately the current price and the support at C$0.70, starting with it backing off to the C$0.70 area again, which is a drop of 13 cents from the current price. It is therefore viewed as being worth us TAKING PROFITS IMMEDIATELY on Monday morning, provided it doesn’t gap down significantly at the open, with a view to probably buying it back again in the C$0.70 area, depending on how it looks at the time, assuming it reacts back that far.
Avivagen Inc website
Avivagen Inc, VIV.V, CHEXF on OTC, closed at C$0.83, $0.63 on 8th March 19.
Posted at 10.00 am EST on 9th March 19.