Thursday, March 21, 2013

Tinka Resources (TK.V) -- 3/20/2013

Tinka (TK.V) closed at a new high today, and continues to show strong action in a relatively weak mining sector.  However, Tinka has an interesting attribute I've noticed:  it tends to lag a day behind the miners in general.  There are exceptions to this, of course, but I've been able to trade this rule successfully.  Tinka also has been showing a nice propensity to stick to ranges once it establishes them.  I've noticed these are often in $.05-.10 intervals, followed by back tests, then up again.  Additionally, it seems like sustained moves are capped by the 7-day RSI getting oversold (see below).

Because today was a new high, because today was a down day for miners generally, and because it corresponded to the RSI 7 becoming oversold, I sold today at $1.23 after accumulating at $1.08 and 1.15.  Stochastics are still imbedded, and the MACD looks good as well; however, for me that wasn't enough to not take profits.  I will look to reenter around the $1.15 range again, or if it can close against the upper BB, I will assume it is going to ride the band for a few days up, as has tended to do.

Tinka reminds me a lot of Orko Silver.  I think it will continue to do well up until $1.50, at which point I guess a new batch of drill results will be needed before the resource enthusiasm returns to push it up towards $2.00. 

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