MAX - Is it time to sell some shares ?
Buy LOW and sell HIGH.
BUY - Buy when DAILY and WEEKLY charts show that CTM (Chande Trend Meter) is below 20 and 30 respectively. Below 10 on both charts indicated that it is extremely oversold and it happens
in a bear market.
( Bear market bottom happens every 5 or 8 to 10 years. Examples - 2020, 2009, 2003. Individual stocks timeframe may be different.)
SELL - Sell when CTM is above 90 for both daily and weekly charts.
Review both charts for MAX listed below. Make your own decisions based on the charts and after reviewing all news releases from MAX for the last 5 years. ( Go to MAX web site and read them all )
MAX is at extremely overbought level. MAX WEEKLY CHART MAX weekly chart click here MAX DAILY CHART MAX Daily chart click here to view General Play book of Junior Mining Companies : 1. Ran out of money
2. Raise money by selling stocks below prevailing price. Dilutes current share holders.
3. Stock price goes up on promise of great things to come out of drilling.
4. Price initially goes down and then goes up.
5. Sometimes it is accompanied by pump-up by some experts/news writers/ pundits.
6. Share prices goes down.
Need an example ?
De Grey Mining Ltd ( Australia) - Already indicating 8 million oz of gold.
1. Stocks is trading at AUS $ 1.25
2. Company sell $100 million worth of stocks at $1.10
3. Stocks tanks to $1.08
4. Stock then climbs to $1.40
5. Then stocks has traded back to $1.12 several times.
If you know how the game is played, you can make a lot of money in a short period.
If you invest in mining stocks, you should be aware of
The Lassonde Curve Here is URL
https://kuchling.com/the-lassonde-curve-a-wild-ride/
Lassonde Curve article to review - click here The Chande Trend Meter (CTM) You may want to read on CTM.
Here is URL: https://school.stockcharts.com/doku.php?id=technical_indicators:chande_trend_meter
Chande Trend Meter (CTM) [ChartSchool] (stockcharts.com) CTM and SPY500 - Review Spider 500 ETF 5 year weekly chart Draw your own
conclusion of when to buy and sell SPY.
Here is URL
https://stockcharts.com/h-sc/ui?s=SPY&p=W&yr=5&mn=0&dy=0&id=p84970005154
SPY Weekly Chart - click here to view Here is 1990 to 2022 weekly chart of SPY Is it good idea to buy when CTM goes below 20 and then sell when CTM goes over 95 ?
One thing to note is that overbought condition can last a long time but eventuall corrects.
Therefore start selling to reduce your cost when stock becomes overbought.