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Right Side of the Chart

...because anything to the left is history
  
  • ACI - Nov 15 201220121115
  • ALIAF - Mar 20 201420140320
  • DGP - Mar 25 201520150325
  • GDX - Apr 22 201520150422
  • GLD - Apr 22 201520150422
  • $GOLD - Apr 22 201520150422
  • $HUI - Apr 22 201520150422
  • NUGT - Apr 22 201520150422
  • POT - Jan 13 201620160113


Long-term Trades

Long-term Trades are trade or investment ideas that have the potential for significant returns over a longer-term period, typically several months or more. This category of trade ideas might be useful for the longer-term swing trader or investor looking for investment ideas to supplement their existing portfolio and prefers a less active, more hands-off approach to investing.

Jan 132016
 

With an a current dividend yield of 9.7% and the potential for considerable capital appreciation, POT (Potash Corp.) will be added as a Active Growth & Income Trade idea at current levels. Several near-term price targets are provided for typical swing traders while my current preferred target for a longer-term Gr & Inc. trade would be at least T3 (19.47) at this time.

POT daily Jan 13th

POT daily Jan 13th

Although I believe that a decent fundamental case can be made for an investment in POT, as with all trade ideas on RSOTC, the primary reason for entering this trade is due to the fact that the stock offers an objective entry based off the charts (technical analysis). As this 1o-year weekly chart below highlights, the recent bear market in commodities, including agricultural related companies such as POT (a fertilizer producer) has dragged POT down to rarely seen weekly oversold levels, which have historically preceded major bull markets in this stock. While oversold is not a stand-alone reason, especially as a timing indicator, to buy a stock, a case for a long entry here can also be made as POT is currently trading at long-term support (weekly chart) with positive (bullish) divergences in place on the daily time frame.

The current final target, T4, is 22.20 with a suggested stop on a weekly close below 14.90 (about 90¢ below current levels), offering an very attractive R/R of roughly 7:1. Swing traders targeting any of the earlier price targets might consider a more aggressive stop, using an R/R of 3:1 or better.

POT weekly Jan 13th

POT weekly Jan 13th

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Apr 052015
 

Friday’s soft payroll data only helps to affirm the near-term outlook for additional weakness in the $USD and additional gains in precious metals, commodities and other dollar sensitive assets, including more downside in US equities. Although the 19.90 area remains the near-term bounce target for [continue reading…]

 April 5, 2015 10:13 pm  Gold & Commodities, Long-term Trades- Active Tagged with: ,  Comments Off on Additional Upside Swing Targets for GDX
Mar 312015
 

GDX is now approaching the 18.30 horizontal support level, offering an objective add-on or new long entry. Dotted yellow lines show GDX falling to support within a bullish falling wedge pattern complete with positive divergences in place. Suggested stops would be calculated using a 3:1 [continue reading…]

 March 31, 2015 12:55 pm  Gold & Commodities, Long-term Trades- Active Tagged with: ,  Comments Off on GDX Bullish Falling Wedge Pattern + Support