ARU Speculative Buy
Aurelian Resources is a company that I have mentioned briefly in the past couple weeks. The chart is madness and I expressed concerns about such quick and such profound share price movements.
However, as long as the price stays above the trend line, I cannot bet against it. I am not smarter than the market and right now the market is telling me that the share price could still go higher.
The thing that I still haven't seen yet is the distribution by the pros. I have identified the accumulation phase in the chart below but to me, the distribution phase is still to come. It could be tomorrow or next week but I'm guessing it will be more towards the beginning of september. Why?
Well ARU's $20M private placement holding period expires on August 28th and sometime around then could be the distribution phase. I am speculating but what level headed individual wouldn't want to cash in 10 bagger gains off their private placement only 4 months ago?
So in conclusion, I am pessimistically long ARU. If the share price passes the previous high, then I will add to my position. But as soon as I see huge volume, especially after August 28, I will probably unload some shares and the rest will be sold when/if the share prices dips below the 30 day moving average.
And I will also probably go short after a 30 day moving average crossover because the share price has been so parabolic that I don't see how it can be sustained in the medium to long term!
