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June 23, 2009 / Jeb

Best Penny Molybdenum Stock

GMO 6-23

General Moly (GMO) has come back close to its suport at $2 and the 50 day moving average.  Tomorrow’s Fed decision will move the markets so I would wait and see which direction the market will take us.  My personal opinion is that the FED will follow Canada and not have any rate hikes until 2010.  This should be good for precious metals and commodity stocks.

If I see support at this level and GMO bounces off the 50 day moving average with volume then I will add to this position.

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3 Comments

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  1. Tuni Singh / Jun 24 2009 7:51 am

    That is really interesting, I had my my account set to buy GMO long at $1.87. I figured that is a support and not much downside. As you know it did not hit it yesterday so we’ll see today.

  2. Tuni Singh / Jun 24 2009 9:00 am

    This is also where I get confused-many stocks are hitting their 50 day moving averages-is this the time to go long as they have puleed back to retest support or is it a time to short? What does one look for before making the decision?

    • Anticipate Opportunities / Jun 24 2009 3:25 pm

      One has to look at the price volume action around the 50 day. If it is after an initial breakout then the decline back to the 50 day should be on lower volume. Volume should come in as it bounces off the 50 day.

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