Monday morning I decided to close out on my entire holding of U.S Gold Corporation (NYSE:UXG) at $5.79. Readers will probably be a bit confused by the move, given my bullish take on the gold market from last week and the fact that I doubled my position last week at $5.05.
However, while I continue to be a gold bull over the long term, I have also sat by as a UXG shareholder and watched the stock oscillate in the $5-$6 range for the past few months. The stock appears to be range bound until more serious exploration work gets underway, and I believe it will be possible to re-enter the position at a better price over the near term. With volume having remained light on the stocks recent ascent from the $5 mark, I see few technical signs to continue to hold the stock here.
While I continue to like UXG long term, the recent price rise is giving me the chance to exit the position at a small profit and look to patiently re-enter at a more advantageous price. While this admittedly risks missing potential upside if positive news is announced, I believe that the odds are in favor continued oscillation in the stock price, and I will be looking to buy future dips.
UXG 1-yr chart