It's Sunday evening and time to make my shopping list for the week. I've selected 4 mining stocks based solely on their charts, though I have done some research on each company. The first three mine gold, the fourth platinum.
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Let's begin with Capital Gold Corp (CGC). You may recall that I bought CGC near the top earlier this summer and jumped ship with a 4 penny loss when the True Strength Index (TSI) indicator warned me to take my money and run .
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Anyway, CGC looks ready for action now.
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Click on the chart to ENLARGE
Second on my shopping list is Gammon Lake Resources (GRS). Now that GRS seems to have some momentum and a ZERO crossover of the TSI indicator, I think the professional trader would look at this and think it easy money to at least test the resistance line overhead at about $6.00. Heck, even an amateur like me thinks it will make $6.00, as long as gold does not suddenly fall off a cliff.
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Click on the chart to ENLARGE
Third on my shopping list is New Gold Inc (NGD). This company came out with some bad news on July 7 causing a gap on the chart that should get filled sometime (@ $5.70).
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The bad news that threw the price down was that NGD was going to close one of its four producing mines due to an impossible labor dispute.
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However, just a few days ago the company pre-announced that Q2 production increased 62% over a year ago and their full year guidance for number of ounces was unchanged at between 330-360K at a total cash cost of $445-$465 per ounce.
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What the company did was move all their 'in-house' contract employees from the closed mine over to their neighboring mine, and put them to work producing even more gold there. I do not think "the market" has figured this out yet and the price should, at the least, gravitate back up to $5.70.
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Excellent momentum spring loaded for a pop and a near ZERO crossover.
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Click on the chart to ENLARGE
We're getting close to my favorite stock. But first let's look at Platinum.
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Platinum looks like it is about to break out or break down. The TSI says Platinum will break out. Money Flow has bottomed and is rising nicely.
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For the past 3 months Platinum has been basically flat, bouncing off of $1500.
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Click on the chart to ENLARGE
Fourth, and my favorite prospect, is Anooraq Resources Corp (ANO) - a platinum miner. This stock has been nearly cut in half while Platinum has danced around $1500. If Platinum breaks out I know what ANO is going to do. :)
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Great technical setup just waiting to scream higher.
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Click on the chart to ENLARGE
Just in case you are wondering why this ANO setup has got me losing sleep at night, take a look at this replay from last year - 2009.
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Click on the chart to ENLARGE
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_special.gif)
Curious if you have looked at GORO, (otc.bb), very light volume, but applied for amex listing. Short term might correct but the fundamentals look interesting to me.
ReplyDeleteI remember liking GORO when it was $5...now it is something like $14. Great investment. Well, FreeStockCharts, unfortunately, does not have GORO, so I can't do my TSI thing with it. I also do not see it listed at our Kitco source for expected earnings. It spent the first half of 2010 consolidating between $10 and $12 and of late is on the move again. Your right, it looks a little top heavy at the moment. Divergence in RSI and MACD looks like it is rolling over. Really, that is about all I know.
ReplyDeleteIs there some information you would be willing to share with us? Please feel free to do so and in either regard, thank you for writing.
Oh yes it does John! Just turn on the otc.bb feed on the setting! I did, it works
ReplyDeleteMore info, just went into commercial operation. Initial production, matching projections. 1/3 dividend policy, project price $42 in 2-3 years. 200/oz adjusted cost, projected to real ZERO when underground phase starts. Some of the richest deposits in some of the easiest to mind conditions.
ReplyDeleteCheers John,
ReplyDeleteGreat info...
Jack Foley
How does one turn on the otc.bb feed? Which button next to which button - or however you care to direct us to it. Thanks.
ReplyDeleteUnder tools, add/remove exchanges.
ReplyDeleteMore info: 25% management owned, strong anti-dilution policies, zero debt.
Thanks Jack.
ReplyDeleteYeah, back to GORO. Hey, thanks. I've got it on my screen now. I always remember this one as having the most unbelievable fundamentals - and it looks for real. I'll add it to my list to follow and perhaps someday soon I'll have a chart of it up on the website for people to take a look at.
25% management owned? This company has some HAPPY managers who just love going to work every day. Thanks for all you shared with us!
www.goldresourcecorp.com has an excellent recent presentation in the investor's section.
ReplyDeletethe 25% might include all officers, I can't recall if the Reids (founders) are much less than that. The younger son just got the presidency, limited experience so, maybe a risk, but a good staff surrounding him and parents with the know-how. Great strategic partnership with a British miner that owns like also 25% or so, that just lost rights to first funding due to GORO meeting production criteria, so likely little or no more dilution, just cash rolling in and 33% dividends (barring nothing evil)
ReplyDeleteMorning all, lets not forget gold option expirations take place this week on the 27th and we all know the games often played by "da boyz" leading into the date, silver doesn't have a reset this month
ReplyDeleteHave a great week!
J
hey great information.
ReplyDelete