MYNG.OB

[Ramsburg]

Hello,

This is a different approach to the recent short term trading setups I've been posting on this board.
I've been following MYNG on my watch list for a while, but now I think it's time to enter this setup... This post is just for discipline purposes, I'm posting my plan (trading setup), and I'll trade my plan.

Ok, this is the plan:
MYNG.OB (Golden Eagle International, Inc) is a small mining company, operating in Utah and Bolivia, stock has fallen to new lows on the last few months, with no upside correction.
In April, a big volume near the lows showed that a lot of investors had gone away from this stock, since then, stock has been on a little price range, which in my opinion suggests some discrete accumulation at this levels.
Right now, the top of the range is $0.0205 and the bottom near $0.0175.

There is no technical signal yet !
But a breakout of the $0.0205 level, with increasing volume, would be a strong buying signal for mid-term purposes.

Technical patterns have been working great on this stock, a Descending triangle in March, a descending price channel in April, and now this price range...
Company is making some changes on the board of directors, and I believe that this could be good.

Here's my trading setup on this one:
-   I'm buying now (before a buying signal)
-   My mid-term price target is somewhere between $0.0375 and $0.0425, which was the last reaction zone
-   My stop on this trade would be a new low on close (below 0.0175)

Any opinions on this trading setup ?

Best regards !

[saffeysite1]

Great trade plan on the penny. 

Hey Rams,

I have noticed since i have been trading alot more pennies than usual that they have very diff. buy signals than regular stocks.

I have noticed that a lot of these penny stocks have cyclical patterns.  That traders of pennys must play all the time.  One I have taken notice is when the RSI - hits 30.  then start to see some accumulation, then a move up to 50-70.  Then once it hits RSI - 80 a sell off.

I think we should continue on this path on how to play penny's.  Because from what I am seeing is that when it's posted on here to get into the stock, it's already to late.

thanks
Saffey1

[J.Livermore]

I've made a few bucks on MYNG last January 
Enjoy your plan rams  so I buy your plan 

I'm in @ .021

[anthony420]

The CFO has been buying this stock all the way down from .18, the last purchase being almost a million shares at .0259 in April 2005. Must think something of the company. In at .021, looking good

[Ramsburg]

Great trade plan on the penny. 

Hey Rams,

I have noticed since i have been trading alot more pennies than usual that they have very diff. buy signals than regular stocks.

I have noticed that a lot of these penny stocks have cyclical patterns.  That traders of pennys must play all the time.  One I have taken notice is when the RSI - hits 30.  then start to see some accumulation, then a move up to 50-70.  Then once it hits RSI - 80 a sell off.

I think we should continue on this path on how to play penny's.  Because from what I am seeing is that when it's posted on here to get into the stock, it's already to late.

thanks
Saffey1

Thanks Saffey

Well, I don't trade pennies based on Technical Indicators, but I do love chart patterns
Triangles, flags, H&S's, channels, Price Ranges... and of course the volume analysis.

Wish me luck on this one (I've bough 3% of my equity @ $0.0205) 

[Ramsburg]

The CFO has been buying this stock all the way down from .18, the last purchase being almost a million shares at .0259 in April 2005. Must think something of the company. In at .021, looking good

I must dig a bit more on this one... but at first sight, it looks like they are changing the house and in a stock like MYGN, with a trend like this, it could mean a trend reverse for the upside.

Volume today is getting bigger...

[stocky]

I am also in    Applaud Rams

[Rogue Trader]

I'm trying to buy @ $.021 did I miss the train ? 

This stock is breaking the range, do you think it will go back to 21 ?

[Ramsburg]

I was not expecting all this reaction today 

Now we have a breakout with big increasing volume, and if it holds like this till the end of the session, we have a strong buying signal.

Chart update:

[anthony420]

The thing you really have to be careful with is since Frederick's post, the thing has moved up substantially. Is the move associated with the recommendation , or is it something else. My experience with these picks has been 3SOF start the ball rolling and then, unless there is really something behind the story, it will eventually fizzle out. BLYC is a great analogy.

[ttvert]

It's a good stock, and very cheap.

Take a look at the website: http://www.geii.com/index.php and see the Bolivian Powerpoint:
http://www.geii.com/media/ppt/geii_cg_bol_sa.ppt

This could be a 10 bagger, if they start operating their Bolivian gold like they should ?

[eliteG]

Now thats a plan(applaud)...good luck everyone in this 

[Ramsburg]

The thing you really have to be careful with is since Frederick's post, the thing has moved up substantially. Is the move associated with the recommendation , or is it something else. My experience with these picks has been 3SOF start the ball rolling and then, unless there is really something behind the story, it will eventually fizzle out. BLYC is a great analogy.

I understand your point anthony... But shall we stop talking about pennies ? 
I'll follow my plan, and I'll try to forget any eventual «price noise» from todays session.

I'm trying to buy @ $.021 did I miss the train ?

This stock is breaking the range, do you think it will go back to 21 ?

I don't believe you missed the train... This stock is not an High flyer, you should make your price with no problems.

best regards,

[anthony420]

Keep the analysis coming. I think it is everyone's responsibility to do their own due diligence once you have made the recommendation. Some of these pennies have a good story behind them and it is these companies that we are ultimately looking to find. Keep up the great work.

[TRUNK]

I think your strategy is perfect Ramsburg... Finding the Penny before it breaks out is the way to do it..  You may not hit as many homeruns this way, but your not going to get hurt either if the breakout never materializes..

I'll watch this one closely and root for you all!