Jim Letourneau's Blog

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Crazy Kensington

I'd like to portray myself as a calm rational trader who buys and sells with machine-like efficiency. Today I noticed that Kensington Resources was making a new high (news from Shore Gold triggered the activity). I had flagged the $1.50 level as when I'd like to add to my holdings. I saw a nice breakout with above average volume so I put in my orders. All in a days work. Within half an hour prices dropped to as low as $1.27. I had some rather dark thoughts as the red bars stretched ever lower. Given there was a lack of catastrophic news I decided to hold on for the ride (at least until the end of the day).

What I didn't look at, and probably should have considered, was the 5 year monthly chart. It shows a nice breakout from a long term wedge and potential for some long term gains.

Kensington Resources - 5 minute chart

Kensington Resources - 5 Year Chart

Not Advice
I currently own KRT.V
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