Taseko Mines (TGB) Increases Reserves Finds Support at 50 Day Moving Average
Today Taseko came out with a 70% increase in their mineral reserves at Prosperity. Prosperity is the largest undeveloped mine in Canada. I wrote a few weeks ago that I believed that Taseko would find support at the 50 day moving average. Taseko has been one of the strongest mining stocks in the sector up over 100% since our original pick at 1.50.
Take a look at the chart and the huge volume support.
After a stock breaks out of an ascending triangle it is quite often to find support at previous resistance which TGB has done.
Precious metals look strong however I am monitoring the overall market closely as indices such as the Nasdaq has broken support trend lines and the 50 day moving average. Momentum is diverging negatively with major market indexes and protecting profits is the number 1 rule in trading. Indices are extended over the 200 day moving average and an eight month rally may be in need of a correction.