Wednesday
Jul112007
Crosshair: Non-Symmetrical Triangle Formation
Wednesday, July 11, 2007 at 10:49AM
We sold Crosshair in February at about $2.60 having bought it at $1.86, a profit of about 40%.
Crosshair is still on our uranium stocks watch list but we are yet to be impressed by this uranium stock so we remain neutral.
The company has recently began a C$8.5 million drilling program on their uranium property in Labrador, consisting of 40,000 metres of drilling. If we see some good results coming through, it is likely that CXX will spike upwards, perhaps challenging its all time high of around $4.00
Technically speaking, Crosshair seems to have formed a Non-Symmetrical Triangle. The triangle looks to be coming to a point in a couple of months, so if CXX is going to make a breakout, it should happen by the end of the summer. The textbook technical way to trade a non-symmetrical triangle formation is to place a sell on a break down and a buy on a break out upwards.
We will monitor the progress of Crosshair closely and keep our readers informed of any breakouts or other significant news.
Another reason not to buy Crosshair right now is that the 50 day moving average line (blue) has just broken down through the 200dma (red). This is a negative sign so we will monitor the break through to see if it bounces back up or continues of this pattern of decline. Recently the stock also broke the 200dma, so it needs to find some more support before we seriously consider giving a buying signal for this uranium stock again.
Crosshair Exploration and Mining trades as CXX on the Toronto Venture Exchange.
Crosshair is still on our uranium stocks watch list but we are yet to be impressed by this uranium stock so we remain neutral.
The company has recently began a C$8.5 million drilling program on their uranium property in Labrador, consisting of 40,000 metres of drilling. If we see some good results coming through, it is likely that CXX will spike upwards, perhaps challenging its all time high of around $4.00
Technically speaking, Crosshair seems to have formed a Non-Symmetrical Triangle. The triangle looks to be coming to a point in a couple of months, so if CXX is going to make a breakout, it should happen by the end of the summer. The textbook technical way to trade a non-symmetrical triangle formation is to place a sell on a break down and a buy on a break out upwards.
We will monitor the progress of Crosshair closely and keep our readers informed of any breakouts or other significant news.
Another reason not to buy Crosshair right now is that the 50 day moving average line (blue) has just broken down through the 200dma (red). This is a negative sign so we will monitor the break through to see if it bounces back up or continues of this pattern of decline. Recently the stock also broke the 200dma, so it needs to find some more support before we seriously consider giving a buying signal for this uranium stock again.
Crosshair Exploration and Mining trades as CXX on the Toronto Venture Exchange.
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