New Gold, along with Yamana, Gold Resources and First Majestic, is on my short list of quality gold and silver stocks I am looking to build a position for what I believe will be the next major leg up to $2500+ gold in the years ahead. NGD is now breaking down below a 10 year long trend line. I believe this type of action will shake out the last of the gold bugs and fortunately there is a cluster of daily targets just below at 1.90, 1.83 and a weekly P2 of 1.69. Catching falling knives can be hazardous to your financial health so be patient and wait for the an impulse leg on the daily before committing too many chips. UPDATE (July 26, 1:04 p.m. EDT): In bear markets all news is spun as bad news and NGD’s Q2 results yesterday after the close was no different as the stock is being pummeled this morning down as low as $1.42. Now that NGD is clearly below its long term trendline we are now getting the setup I look for. The time to buy is when there is blood on the streets and NGD has done its fair share of hemorrhaging. Stay disciplined and wait for an impulse on the daily on the way up before you enter. A pair of d targets below here is where I would start looking for that first impulse leg up on the daily before going long. _______ FURTHER UPDATE(S) by Rick Ackerman (July 29, 5:07 p.m.): I wouldn’t touch this stock until it falls below 0.65, a prospect that grew more likely with last week’s plunge below a secondary pivot at 1.51. The initial tout, prepared by subscriber David Isham, appears to have underestimated the extent of the bloodbath in New Gold shares. In my opinion, there’s no point in trying to catch a falling piano. If it surprises by turning around, we can always get long with-the-trend using a camouflage set-up or a similar low-risk entry tactic._______ UPDATE (July 30, 4:24 p.m.): Raise the bid for 400 shares to 0.96. I took another look at NGD’s charts, and although a plunge to 0.64 is quite possible, it’s not likely to occur without a bounce first from the 0.94 target shown. _______ UPDATE (August 7, 5:10 p.m.): The stock shows no eagerness to accommodate our stingy bid. Lest we miss getting aboard if NGD leaps higher without pulling back, I’ve set a screen alert at 1.36, a minor-breakout threshold on the intraday charts. You can buy there with a 1.36 stop, 1.38 limit. ______UPDATE (August 9, 5:06 p.m.) Just a reminder: You can start liking/loving this flaming disaster again near 0.94. We’ll have sidestepped quite a bit of pain, since others have paid as much as 6.00 within the last 12 months. As ‘Maven’ noted a while ago in the chat room, at 1.00 or less it’s like owning a cheap call option with no expiration or time decay
