Buying Opportunities/Selling Opportunities

During the stock melt-up, the breakout to newer highs seemed the relief that shareholders had anticipated for years. But any gains have now been given up to panic selling after the initial panic buying.

The panic buying could have been anticipated, and I think we'll see a repeat of the same. But as for buying opportunities, they have been agonizingly present for years in the complete absence of selling opportunities. You have a selling opportunity when GBN.V shares are chronically overvalued for an extended period. So the meltup gave few, if any, opportunities to do either.

The melt-up was too brief and the capitulation not quite deep enough to make real progress in trading the shares. Next week will bring a major test of the downside risk in the stock, though its very highly likely we have seen the capitulation low. On a technical note, the 50-day MA would be tested before moving higher.

A rally past 56¢, which is the prior pivot point to beat, says that we will complete the '3' upwave eventually. I have added the volatility index overlaid in green in the daily chart, since the melt-up on May 6 was during a downside flash in the markets, I assume the same will happen again.

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Weekly Analagous Chart

The gold weekly analogous chart surprised with an analogous move to prices in Dec. 2005, so for the most part, the analogy is correct. Anticipating a rally to new highs for January.

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