geolsec derisk the bobrikovo and melrose gold , page-8

Hi Aberfan,

Share price dropped is due to more sellers than buyers and many reason COULD cause the selling (huge profits since Share purchase plan, September 2009; nervous about the markets potential pull back; new trading opportunities; meeting individual investment/trading objective, etc to name a few also ). One of them could be below.

Short term traders mainly those day traders, swing/position traders took profits. For example, the chartist Darryl Morley initially recommended KOR on 16 March 2010 and bought KOR at 36c (with stop loss 33c). http://www.thedaytrader.com.au/24_March.html

In the next 3 to 4 week, the price has moved up and reached 47c high and close 43.5c on 29/3/2010. The first target (46c) has been reached and to protect the profits the stop loss (trailing stop loss) has been increased to 41c. The second target is 70c.

When the second target (70c) has not been reached and the traders were also wondering and worry whether All Ords (XAO) and ASX/S&P 200(XJO) could cross the 5000 mark or another pull back of about 5 to 10% similar to the one took place between late Jan and Feb 2010 may happen again in the near future.

In last few days, the KOR dropped below 41c, and stop loss has been triggered. The day traders locked in the profits at 41c and or at a higher price depending the trailing stop loss employed. http://www.thedaytrader.com.au/14_April.html


In the long term subject to the following market risk, in my humble opinion, the KOR should out perform the All ORDS and ASX/S&P 200.

* Barring GFC or PIGS / UK /US debt issue getting worse
* Subject to the All Ords index (XAO) /ASX 200 (XJO) stay above 4600,
* Dow stay above 9800; and
* Gold price stays above (US$950/oz);
* And good supports from institution.


As always, DYOR and consider individual investment and trading aim, time frame, risk profile, etc.