Aurizon Mines Making Its First Gold Pour - And The Chart Looks Good

| About: Hecla Mining (HL)

Gary Tanashian submits: As I posted earlier, my trading shares of Aurizon Mines (AZK) were sold at 3.40 as the stock became over-bought in the short-term. This was done with difficulty as the the stock had made me look like a genius yet again.

Luckily I knew better (I am not assuredly not a genius) and realized it was time to take profits and hope to re-enter at a later date or failing that, just move on with other holdings. As I have often mentioned, there is no better trading situation than being in position to buy from emotional holders who are regurgitating their shares right above support. If it happens on a fledgling gold producer making its first gold pour at a reasonable cost per ounce that has recently begun the process of being revalued as a producer by the market, well so much the better. Aurizon Mines certainly seems to fit the bill.

azk chart

We will let the chart speak for itself as various indicators reset from over-bought and strong support just above $3 is tested. Please note that small mining companies are especially risky, but with that risk comes a little thing we are all interested in as investors and traders -- potential reward. The name of the game in successful investing is probabilities, and buying your favored stocks when they present buying opportunities near support levels at emotional flash points increases the odds of success.

The subject of this chart study is a stock that I favor. You may apply these principles to any stock you like for fundamental or other reasons. Good luck.

PS: The "Northgate ramp" noted on the chart is the unsolicited and ultimately unsuccessful bid by Northgate Exploration (NXG) that launched Aurizon's stock to a new level in May.

Disclosure: Author is long AZK