Ventana Gold Corp (VEN.TO) is testing its resistance at \$8.00 corresponding to a 38% retracement level from the mid-June dive (Figure 1). Furthermore, gold is tracing an inverse cup-and-handle with a resistance at \$1170 (Figure 2). So rather than wait and see if VEN can break upward, I decided to book my profit and watch from the sideline.
[caption id="" align="aligncenter" width="570" caption="Ventana Gold Corp. (VEN.TO)"][/caption] [caption id="" align="aligncenter" width="570" caption="Gold (from Finviz)"]1[/caption]
The past few weeks have been difficult as I have had a series of losing trades. So I am playing it safe until my account can make a new high. Which is actually just a couple of percentage point away. In any case, the profit for this trade is (\$7.89 - \$6.93) * 250 = \$240 - \$9.90 commission = \$230.10 = +2.4% in account. I can't help but feel that VEN will continue its rapid climb for a couple more days. I am eyeing the 50% retracement level at \$8.50 as an immediate target if VEN does break through.