Portfolio Update Week Ending 19th June, 2015
Another interesting week for my portfolio with the return of a little bit of volatility. My largest holding AJX had a very good week rising off it’s recent lows to close up 18% for the week. Likewise my top short to medium term pick CYY had a breakout week in which it rose 52%.
Changes to my portfolio include closed out positions in EDE (for a win) and TTE (for a loss) as well as a relatively ill fated acquisition in CZN which I purchased as a short to mid term trades based on technical analysis – more on this later in the post.
A strong week from AJX and I now feel vindicated holding all of my AJX long term parcel. I’ll be the first to admit that fundamental analysis isn’t my forte, however the fundamental reasons to hold AJX long term are overwhelming in my opinion, and continue to strengthen with every passing month. I think it’s highly possible AJX will be trading over $1 by the end of the year.
Technically wise, the short term rising trend is clearly visible on the chart. Things almost look to be getting a little frothy in the very short term and if I were trading a parcel I’d probably be looking to lock in profits now as it’s hit a long term resistance at approximately $0.70.
However, if you’re a fan of the Wyckoff method, we are now back trading above the “ice” level, and if we can keep above the $0.65 level then the mid term looks very bright.
I expect it to trade in the range between $0.60 to $0.80 over the coming months. A successful break above long term resistance at $0.80 would be very, very bullish.
Whilst AJX was hitting home runs this week, AZK had a shocker of a week and did the exact opposite of what I was hoping for. Price broke below medium term resistance after consolidating for some time.
Looking on the bright side, it has now closed the last remaining gap from it’s meteoric rise down to 14.5 cents. There are two likely scenarios moving forward:
a) we see further falls down to about 10 cents or,
b) we see a swift bounce back up towards the 20c level which may become resistance.
I can’t help but feel there are games being played with the share price as there is a looming capital raising which will be based on the VWAP of the 7 days prior to the raise date. It’s therefore in the interests of the outfit participating in the capital raise to keep the AZK shareprice low. Tin hat thinking (?) – perhaps, but this is the share market and games like this are common place.
We have been told by the company to expect significant and near term revenue from the BrainChip acquisition and in my opinion, any sign of revenue will cause a significant re-rate. The re-rate is likely to be just as explosive as the initial breakout as there is a lot of hype surrounding the brain chip product.
Keep an eye out though as I think anything between here and 10 cents offers a good low risk entry point if you’re in the market for a punt.
The other big runner for the week is CYY. It is about to undertake a highly prospective drilling campaign for copper in Alaska and is likely to see hits of up to 10% Cu based on historical drilling.
No, that’s not a typo; historic drilling intercepted strata-bound mineralisation with grades up to 10% Cu – almost unheard of.
CYY broke up on decent, but not spectacular volume over the last three days and price just poked through previous resistance at 3.1 cents. As at time of writing (Monday the 22nd June) the share price has continued to break upwards, although I expect some selling to come in here as punters take profits off the table.
There is an overhead gap from 4.3 cents to 6.8 cents. This may offer a short term target prior to drilling should the news flow from the pending geophysical survey results show a lot of potential for strike extensions of the mineral resource.
I personally think this is one of the lowest risk small cap resources plays around and have held a significant parcel for a while now, however always remember to do your own researchand don’t take my word for it.
CZN – A New Addition
I bought CZN on Wednesday as a short to mid term trade based on technical analysis. Price has formed a long term base for over a year after a significant down trend. Accumulation indicators like Money Flow shown in the chart below have recently spiked upward for the first time during this basing pattern, signalling someone has started accumulating.
Turns out I didn’t quite purchase at the right time and we had a false breakout and I am now slightly underwater. I think we may have to wait another month or so before we see the “break out proper”.
I will be looking for an initial target of 1.1 cents then 1.5 cents should this occur.
Other than that, a pretty quiet week all around. I sold TTE for a loss so that I could add to my CYY parcel. That decision turned out to be a good one as I have now more than made up my losses. In saying that the TTE chart does look like it provides a good short to mid term entry point so I may look at re-entering at some stage.
I sold EDE (although for a profit) for the same reasons (to add to my CYY holding). Again, this turned out to be a good decision.
All my other stocks had a reasonably quiet week.
Hope everyone has a great week.
The Nude Investor
End of Week Portfolio Summary 19/06/15
|Stock||Average Buy In ($)||Weekly Close ($)||Last Weeks Close ($)||Weekly Change||Overall Change (%)|
|EDE||0.017||CLOSED POSITION at $0.020, total GAIN = 18%|
|TTE||0.037||CLOSED POSITION at $0.031, total LOSS = 16%|