Last Time, This Stock Tripled.
We’ve had requests for some low-priced stock picks, so for the remainder of this week I’m going to cover great opportunities in stocks under $10!
I’m not a fan of gambling on illiquid penny stocks, but I do like the larger percentage gains that are more likely with low priced stocks.
Today’s pick is a perfect example. Gold stocks are getting hot, and this $3 gold miner looks like it could double, or even triple if gold moves like it did in 2016.
Both the Gold ETF (GLD) and the Gold Miners ETF (GDX) have been strong since September, and this week they both broke out of a month long consolidation.
This is bullish, and…
When the gold bugs get bullish, and the metal shines, the more speculative, lower prices stocks like Sybane Gold (SBGL) can deliver spectacular returns.
For example, in 2016 when GLD moved from around $100 to $130 (a nice 30%+ move), SBGL moved from about $3 to $13 which is more than a 300% move!
However, be prudent. Gold and gold mining stocks are difficult to predict so trade them carefully.
As you can see by the chart below, yesterday SBGL broke out over its recent swing high around $3.15.
If I’d presented this before the breakout, my trade would have been to buy the break over $3.15, and put a tight stop in under $2.80 or use a wider stop under $2.60.
That trade is still my plan, I’m so waiting for a pull back that enables us to buy between $3.20 and $3.00.
If you enter, you should place your stop below $2.80 and/or below $2.60.
When it hits $4, I’d move my stop up to under $3.10 as my “no loss” stop.
Then, good areas to take profits are $4, $5.40, $7.40, $10 and let’s hope… $13!
The reason for so many targets is only to show you levels that I would consider resistance worth selling at. You don’t need to take profits at every one.
Rick Nartarian, Chief Investment Officer
Darwin Wealth Creation