I tried to put as many True Strength Index (TSI) indicator BUY confirmations into this purchase as I could find, because I am allocating a good slug of cash to this trade.
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This is New Gold Inc (NGD) and my buy was at $5.04. NGD has two negative divergences in place, a ZERO crossover, a near trend line break of both the TSI indicator and price, and an overhead gap at $5.70 that will be filled for a nice 10+% gain if I sit still.
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My TSI trading record has been updated to reflect this purchase
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I just bought a smaller slug of NGD at $4.96. The average of today's two purchases works out to $5.02, and I have adjusted my TSI record to read as a single purchase at $5.02.
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John:
ReplyDeleteHave you noticed how the miners often lead the price of gold? This morning the PMs seemed to be unimpressed with the rally in gold. Low and behold gold gave up its early gains. I haven't a clue as to how the buyers of mining stocks can be so shrewd sometimes. I've seen this with upside reversals as well when the PMs hold steady while the price of gold plummets.
I like the NGD trade. It looks good in multiple TSI time frames. The MACD histogram just turned positive. MFI looks ok to me. The price drop last month was due to a permitting problem with one of its mines in Mexico.
Duane - what makes me happiest is to hear that you are looking at NGD using multiple TSI time frames. I think you gave me my paycheck today, not the stock market. Thank you!
ReplyDeletebtw, did you mean time frames like different minute increments, or different magnifications of the TSI setting - like (25,13), (13,7) and (7,4)?
John:
ReplyDeleteThanks to your help, I have one of my freestockcharts.com layouts set to the TSI settings in your question. I generally look at the daily time frame but will also check out hourly and weekly. I have another layout where I have TSI(20,5) and MFI(14). A third layout has MACD.
I thank you so much for your blog. It has elevated my trading IQ.