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Online Share Trading

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Calling a low on HAR 5300c

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kwagga
Super Contributor
I'm willing to bet we've seen a short term low on HAR today. I'm taking a punt on this. 5300 support, target 5850.OMO
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16 REPLIES 16
kwagga
Super Contributor
Gold shares beaten to a pulp
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SimonPB
Valued Contributor
if you ain't closing a short, you shouldn't be buying gold stocks ..
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kwagga
Super Contributor
Nah, think we have some upside potential here. Taken a small position with a stop loss. Har moving into the value territory with a PE below 9. They still make money and pay divi's you know,unlike the platimun producers + they haven't seen any upside after the rand shedding 10% of it's value since Jan. See this as a contrarian view.
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SimonPB
Valued Contributor
you really trading a gold stock on valuations ?? nobody knows how to value a gold stock, not ever .. an anyways trading is price, nothing else ..
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kwagga
Super Contributor
Your right Simon. You can seldom trade gold shares on valuations, so if I get the change, I do it. Har has reached some strong support, and I know you don't believe much in support and resistance lines either, so I'll stick to saying that based on lastest earnings, HAR seems cheap.
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kwagga
Super Contributor
aka the price is right...
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Not applicable
lots and lots of contradictions here. You are trading on valuation - but you are believing in support and resistance. And you say based on latest results - what? Increased revenue but declining profits and declining EPS? How is that anything to get positive about?
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kwagga
Super Contributor
It's on support and dirt cheap. That's all you need to worry about. I'll worry about the earnings decline. I'm looking for a 10% bounce. Tomorrow should take care of a portion of that.
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kawcha
Contributor
I agree with Simon, it is all about the price. But kwagga does make sense in this position. The price was wandering around 50's to 61. I just missed a short as HAR didn't get through R60 for my req to short (reversed from 5911). Turns out a 3 days loss streak, especially a big dump down on 3rd and 4th April. From what I guess it should recover on 5th, as it was trading nearly at 52 weeks low at around R52 on 04/04/2013. The thing is why it will recover on the 5th, if it should have reversed on the 4th. Technically it will bounce, but given the current eco situation, it is just hardly convincing HAR is trading at a bargain. The only reason people buying will only based on the price history, which is why kwagga take this position. Simply too risky for a take for me, perhaps a long shall it drop below 52 weeks low.
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kwagga
Super Contributor
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kwagga
Super Contributor
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kawcha
Contributor
well done, rather settle the position already, you already got 30% on one trading day. :)
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sponono
Super Contributor
yesterday's action tells a story: a very clear buy divergence (price lower low, RSI higher low). Normally this means there is a high probability of a trend reversal.
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kwagga
Super Contributor
room for a little more :-)
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kawcha
Contributor
Well, have you pulled out today? At least there will still be a bit profit
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kwagga
Super Contributor
HAR is up 5% since I bought and I'm still looking at my target price of 58.50. SBK has a target price on this of R65, but I'll settle for less.
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