OR Royalties Trade - An example of a good low cheat setup
- Santo
- Feb 8
- 2 min read
Updated: Feb 9
I performed an analysis of all my trades from the month of January 2026. While that analysis forms part of the next article, I wanted to run you through an example of a pretty good setup that I was able to nail down last month.
With the recent focus on precious metals royalty companies such as OR Royalty and Franco- Navado have been in the news and generating investor interest.
OR Royalties has been performing well recently. It caught my attention because of its performance and the focus on precious metals. OR Royalties is a Canadian company which earns its revenue through royalties from its mining interests. It has high operating margin as it doesnt run the mines itself.
In the case of OR Royalties, it formed a nice low cheat around the 1st week of January. I bought the stock on the 7th of January as it picked up volume breaking over 38.10. The relative strength line had been improving and it broke the RS trend line.
The initial stop was at 34.19 which I moved quickly up to 34.99 and higher as the stock continued to perform.
In this case, the weekly was also supporting the move as depicted by the weekly stock price below:
I sold partial on strength on the 26th of Jan as the stock looked extended as the market started to seem frothy. Silver and Gold prices fell soon after with SIlver plunging more than 25%.
I got stopped out of the remaining on the 30th of Jan.
I captured the whole move pretty well. What I didn't do well, is to capture more of the partial profits in the initial sell as I sold only 25%. Ideally, I should have sold 50% and kept the remaining for the stop.
