This is an interesting case DRM, and the result of the cap raise as soon as it hit a new high, has caught a few of us in the trade. I added to my existing position on Monday at 31.5c and use wide stops, so I'm still in the trade.
I use both TA and FA with a high bent on TA. As I mentioned in Peter2'S thread, I find that a sudden bad news announcement in a rising trend, tends to be just a pullback, not a change in trend.
I also figured that for the company to pull off a $25m cap raise, at a price the share was a few days ago, then there must be some very good news on the way for all the large holders + sophs to take up the offer so willingly, with a negative gold price and DOW in the background.
I will not be surprised to see some good news announcement that gaps the SP in the other direction in the next few days, but also I'm prepared to be completely wrong.
With any cap raise you expect the price to retrace to the issue price, in this case 28c, and often go below as it has slightly today. This is because there would be sophs that took up the offer but didn't really want the stock. It happens all he time, as to get offered the really good ones, you have to oblige the broker in taking up a lot of others that you didn't really want, then just dump them on market.
If the stock continues to fall, quickly, then I'll take the loss. If it meanders for a couple of days, without falling much further, I'll stay in. Should that happen for too long, then I'll bail.
If there is good news released in the next week or so, that takes it to new near term highs, I'll probably add, again.
The overall chart pattern is still bullish, with recent 7 month highs a bullish sign as they were higher than swing highs from the prior down leg. This could just be a spike down in the overall bullish trend, they happen all the time.
Then again I could be completely wrong here, but in the scheme of things it is just another trade, it will work or it wont.