Buying Green Dragon Gas

This week I plan to buy Green Dragon Gas, a UK AIM-listed stock. It produces gas in China from coal seams, apparently.

Trend-trading reasons to buy:

  1. It has moved up through its 30MA, ie it is recovering from a pull-back

  2. The stock appears to be trending upwards overall.

  3. Its recovering from a low in 2013, but used to trade much higher in 2011 (so it looks like it's got potential).

  4. It is well-capitalised (sixth most capital in AIM 100)


Reasons not to buy:

  1. It's not massively traded only 7 thousand shares traded daily (surprising?)


2014 10 25 Green Dragon Gas

I'll give it a go! If you are interested in having a look at my thoughts about some of the other trades I considered placing, then click here (11 mins).

If you are interested in my views on how some of the key indices have done this week, click here (4 mins)

If you would like an update on how my open positions are doing, click here (8mins)

 

 

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