Bought 200 VEN.TO @ $9.74, Stop $8.90

Well I found a viable long term hold just as I declared that there’s nothing good out there today. Yes, I eat my words often. So I took a long position in Ventana Gold Corp (VEN.TO). That cup-and-handle breakout from $9.00 is just textbook (Fig. 1). I am indeed a bit late, but the trend is now upward.

There is a big resistance at $10. It is where the June epic decline started. From just above $10 to $6.5 between June and July. Now that VEN is back at this level again. I am betting that the positive momentum would carry it upward.

My hard stop is $8.90. My mental stop is $9.50. As VEN seem to like to gap at $9.50. From the look of it, $9.50 level is more important than $10. Since we’re above it already, this gives me a bit more confidence in this trade.

Another point to note is gold price. It is on a direct train to test, and possibly, break a new high record (Fig. 2).

Risk is ($9.74 – $8.90) * 200 = $168 + $9.90 commission = $177.90 = 1.85% of RRSP trading account.

Ventana Gold Corp. (VEN.TO)

Gold

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3. Bought 200 K.TO @ $15.94
4. Bought 250 VEN.TO @ $6.93
5. Bought 1000 PMV.VN @ 0.62