Taking A Position in GBR

My latest position was taken today in GBR (New Concept Energy, Inc.). While trolling through my monthly scans looking for stocks that are getting beaten down and that have extreme volatility, GBR popped up:

As you can see, it has a history of making absurd swings from extreme highs to extreme lows, which is perfect for an AIM stock.

Looking at the daily chart from TradingView, above, you see that GBR appears to be trying to hold a possible rising channel. That won’t be confirmed until/unless the price rebounds from the lower trend line and reverses to the upside. But this channel action is what prompted me to enter a position today: if the trend line holds and we get a reversal, the gain could be about 140% to the mid-line and almost 300% to the upper channel boundary.

Of course, it may not reverse, but might continue downward, in which case I’ll pick up however many shares at the end of the month, as determined by my AIM calculator. And if it does go up, you can bet I’ll be doing plenty of selling, setting aside cash for the next major downturn. 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *