RE:Wow!elaela wrote: Why the selling?
You can look at chart after chart of other gold juniors for guidance.
Many gold stock had break outs prior to NUG. The pattern was very much the same:
Step 1, the stock begins to improve and the 50-day average curls up.
As the stock continues to move higher, the 50 day average moves up and through the 200 day average.
The stock winds up getting well ahead of the moving averages and a consolidation takes place, which allows the moving average to catch up to the stock price.
This is exactly what has now happened with NUG stock. On the blast off, the stock got to, what, .26 cents Canadian? The 50-day average was approximately .13 cents.
Barring a down trend in physical gold, my guess is that the stock will consolidate more sideways, than down, and allow the moving averages to catch up.
At that point, the stock will be ready for the next leg higher. Ask yourself what the news flow for the company should look like going forward.
Odds now favor a continued, positive news flow. Those who sold on the early strength are going to wish that they had a little more patience.
They may be leaving a lot of money on the table.