I have owned AXU.TO – Aurora Energy Resources, Inc. for a while, and I am currently sitting on a 22% profit. However, it may be time to sell, for two reasons. First, the chart:
Aurora’s high for the year was $17.75 on February 26; it made it all the way back to $17.45 on Friday. This means that unless we break through the $17.75 level in the next day or two, we are probably looking at a double top formation. The RSI is also up to 69, which is higher than I like to see.
My second reason for selling is that almost 50% of the outstanding shares of Aurora are owned by FRG.TO – Fronteer Development Group Inc., which is my single biggest holding. If I own the parent company (Aurora is a spin off from Fronteer), so I really need to own Aurora as well? Probably not.
My plan is to see where Aurora opens on Monday; if it opens down, I will probably sell. If it opens up, I will watch it very closely to see if it breaks through the resistance at $17.75 and then decide if I’m selling or buying. (How’s that for a clear and decisive recommendation)?
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