China Natural Resources Development (CHNR)

Company

"China Natural Resources, Inc. engages in mining zinc, iron, and other minerals for distribution in the People’s Republic of China. The company owns mining rights in two mines, The Yang Chong mine and the Zao Yun mine, located in Wuhu City, Anhui Province, the People’s Republic of China. The Yang Chong mine mainly contains iron and zinc minerals and has a total mining area of 0.186 square kilometers. The Zao Yun Mine mainly contains iron minerals and has a total mining area of 0.0136 square kilometers. The company was incorporated in 2004 and is headquartered in Sheung Wan, Hong Kong." (Yahoo profile; no company website)

Buy

5-Dec-06. CHNR went into a steep downtrend early in 2006, but appears to have bottomed out (see sidebar). I put in a buy order quite some time ago at a significant pullback from its recent high. That order finally executed yesterday and today.

• Price momentum (PPO) — losing momentum fairly quickly
• Trend (ADX) — weakening since peak in November, but buying pressure (+DI) is picking up again
• Money flow (CMF) — neutral
• Relative strength (RSI) — fell to neutral, but just beginning to tick up
• Volume — huge volume on reporting earnings 13 Nov, and fairly constant around 57K shares per day since then

Sell

18-Dec-06 Santa Claus, why have you put coal in my stocking? CHNR took a dive today and triggered my stop-loss order.