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Strategies & Market Trends : Chart Formations -- Ignore unavailable to you. Want to Upgrade?

To: sean sanders who wrote (256)	9/18/1999 7:49:00 PM
From: Casaubon	Read Replies (1) \| Respond to of 967

Well, I identified GLG as being an ascending triangle when the stock was at resistance ($2.00). So I put in a limit buy at 1 11/16 and got hit the other day. It looked like a decent dragonfly doji right on support; unfortunately the pattern failed and it fell back down into a horizontal trading band, testing gap support at $1.50. (once again with a dragonfly doji). The stock put in a strong reversal on big volume in early april and has tested gap support twice now. The stock has been rumored as a potential takeover target and supposedly has a low cost mining operation coming on line early next year in Honduras (under $200 per ounce mining cost). This is my idea of using gold as a hedge position. It is not a large position (1000 shares) and I'm not a gold bug. Just trying to use the chart patterns and TA tools I've been studying. Also, it is something of a contrarian position with all the bearishness of gold (of course the recent buy rec's from goldman sucks kind of put the Kaibash on that theory <ggg> ) I think your recommended entries are reasonable. I'm probably not going to panic sell out of the position even if support does not hold here because the position is small, unless I really think gold is heading to sub $200 as some think it may. I have heard more reasonable arguments why gold will probably hold above $230, though. I don't think I'll being taking money off the table until at least $2.50 based on the width of the trading band (50 cents). A break out should therefore take the stock from the breakout price ($2.00) to my price target of $2.50.