PINL:VLTAF - Post by User
Post by
eebleron Jul 22, 2010 8:18pm
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Post# 17290282
Top Triangle
Top Triangle
Happened to be checking up on VTR and for those of you that believe in technicals there is a fairly convincing top triangle forming off the high to now. Downside statistics would place the target around the 0.70-0.80 range so I hope for a lot of people's sake that there are some positive news releases to change the direction. A lot of technical patterns don't reach the target but with the markets still headed sideways and this time of year being when people shift their money towards safety and dividends, could be more money heading out of speculative investments.
In terms of candles, yesterday was a doji so that was indecision, and today was an inverted hammer, which can signal a possible reversal. Look for a bullish candle tomorrow to confirm.
I'm still bugged by VTR's decision to use a 0.6 g/t cutoff on the halo/composite as I think they could have presented a much better initial story and done shareholders more benefit. While off playing elsewhere I came across lots of examples of open pit mines that use 0.3 through 0.5 g/t as their cut-off. Massive size not withstanding, Penasquito is only just over 0.5 g/t for its overall average. No need to argue me that size makes for the economics as I am aware of that, but if VTR has 3M-4M at Kiaka alone then it gets into size/economics as well. There are plenty of other open pit mines that have lower overall averages than VTR. VTR could have presented a much larger oz-count and cracked the 2M mark if they had used a lower but still widely acceptable cutoff level. That was a psychological number they could have considered when choosing their cutoff. Management at VTR tends to be conservative so that they can walk the talk but you can be conservative and still use realistic numbers, especially given the structure of the ore body and anticipating >90% recovery.
Anyway, thought I would highlight the technical pattern as well as the fact that most of the daily oscillators are on a very steady trend to the downside. Hourly oscillators show that the MACD turned back upwards today, but there is no confirmation from Momentum or the Williams%.
Do your own due diligence.
eebler