Gold Eagle Mines Ltd. – Watching Closely for a break up or down

by JDH on April 14, 2007

I have owned GEA.TO – Gold Eagle Mines Ltd. for a while. A top of $10.37 was reached on February 26, before Gold Eagle fell to $8.30 on March 5, 2007. It subsequently rose and fell, for bottoming out at $8.55 on Friday.

Gold Eagle Mines

As the chart shows, we have been in a down trend since February 26. The question now, of course, is do we have a base around $8.30, or will the down trend continue (since obviously we can’t be going up and down at the same time)? I currently have 5% of my portfolio in Gold Eagle, which may be high for a stock on the down trend, if in fact it is.

My plan: I’ll watch to see how it opens on Monday; if Gold Eagle opens down, I’ll sell half of my holdings. If it opens up, I’ll sit tight, on the assumption that $8.30 is a base. Time will tell which way this will resolve itself.

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