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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: smh who wrote (9704)	3/31/2007 9:30:18 AM
From: chowder	Respond to of 30204

Re: URRE ... The momentum bands you inquired about are not applicable until price moves above the upper band and price moves up by 20% or more in under two weeks. Only after price has moved up by 20% or more in under two weeks, you should then look for a way to capture the windfall profits in the event price begins to pull back. One way of doing this is to sell part of your position once price closes below the upper band. By selling part of the position at this point, as noted on the chart, you would have captured most of the explosive price move. If price continues to dip, you would have sold near the high. If price decides to head higher from here, you still have a partial position with which to benefit. It's a win-win situation. You win if you are correct (price continues to decline with you selling part near the top), you win if you are wrong (price reverses and heads higher with you still holding a position.) What you do with the remaining part of your position is a matter of personal preference. You can sell all of it once price closes below the middle band, or wait and sell once price drops below the lower band. A lot depends on the size of your profit. If you have a 20% profit, you don't want to see it all given back. So, you would would want to be out of the trade if price dropped below the middle band. If you have an 80% profit, you can afford to allow a little more wiggle room. I wouldn't sell until price closed below the lower band. Regardless of preference, once price closes below the lower band, the position should be closed all together. Price would have lost its momentum and the momentum bands would be confirming that for you. Price above the upper band means upside momentum. Hold on to long positions. Price below the lower band usually provides good shorting opportunities as price would then have downside momentum.