[Tryst]

What are peoples thoughts on the following? It it is a gold miner (CGH) which looks to have broken out into a stage 2 and has pulled back to support (previous resistance) on very light volume. Most of the volume today was from me (I went in too much - more to learn on my position sizing).

It was really bizarre when I bought in as the price spikes up right on my entry and then came right back down. Like someone jumped in front of me in the market...I had this happen on the NBBR stock earlier this year.

I have it as a pullback in early Stage 2A, but still within it's significant resistance zone. So potentially it needs to build a higher base before it could make a good quality Stage 2 advance. And also note that the volume on the Stage 2A breakout in early July didn't meet the minimum 2x average weekly volume requirement.

Precious metals stocks continues to be a promising group though, with multiple miners basing and breaking out in the recent months. But the key for me personally is always the volume, as I want to see exceptional volume on and following the Stage 2A breakout, and a strong volume contraction on the pullback, plus be clear of significant resistance. So my opinion on CGH.L is that it's still a bit early in it's cycle, especially as the monthly chart didn't manage to close above the 30 month MA following it's weekly Stage 2A breakout, and so the monthly remains in Stage 4B, and as you know I personally think that when the weekly Stage 2A breakout occurs, that monthly chart must also be in at least Stage 1A. i.e. which means a monthly close above the 30 month MA.

Thanks for your feedback, Isatrader.

You are right, I may have been a bit early with my initial toe in the water trade...and too large!