I thought it would be helpful to study the mining stocks that have demonstrated significant trend line breaks on their weekly price charts and highlight a few that appear ready to have their fuses lit.
In all, this study will show you the current weekly charts for 19 mining companies. Each chart, in addition to identifying the price trend line break, provides the most current consensus earnings estimates of analysts (as reported by Bill Matlack and published by Kitco on December 28, 2010), as well as the current Price to Book Value ratio.
The first 5 charts demonstrate what happens when a long term weekly chart breaks a significant trend line, as price then rockets to the upside. These 5 miners have recently appreciated in the neighborhood of 50%, and very quickly.
The next 9 charts will show you miners that are in the beginning stage of their rocket launch. These miners have their fuse lit and are just now beginning to blast off their launch pad.
Finally, we look at 5 miner charts that appear ready to have their rocket launch fuses lit. These prospects are being pulled to the launchpad by that huge tractor that features the secular bull in the driver's seat, and are preparing for their moment of glory.
I believe we are now going to begin the final parabolic rise of gold's C wave that will take gold to $1650 sometime near the end of March 2011. This is an excellent time for each of us to reexamine our portfolios and prepare to own the rockets that appear most motivated and prepared to take flight. This study is by no means exhaustive of the possibilities, but I do hope it inspires investors, beginning with myself, to get ready for the awesome display that is about to happen. Cover your ears (and buy).
By the way, after giving each of the 19 charts a look, how many have made a perfect cup with handle pattern? Send your answer to me at: tsiTrader@gmail.com
Click on any chart to ENLARGE
1. Gold Fields Ltd (GFI) up 50% since breaking out 4 months ago.
2.4X Book Value
Click on the chart to ENLARGE
2. New Gold Inc (NGD) up 35% since breaking out 9 weeks ago.
3. North America Palladium (PAL) up 75% since breaking out 10 weeks ago.
4. Silvercorp Metals Incorporated (SVM) up 60% since breaking out 3 months ago.
5. Teck Resources Limited (TCK) up 35% since breaking out 2 months ago.
*6. Anooraq Resources Corp (ANO). Just getting started.
*7. Brigus Gold Corp Ordinary Shares (BRD). Just getting started.
*8. Coeur D'alene Mines Corp (CDE). Just getting started.
*9. Claude Resources Inc (CGR). Just getting started.
*10. Cliffs Natural Resources Inc (CLF). Just getting started.
*11. Harmony Gold Mining Co (HMY). Just getting started.
*12. Minefinders Corp (MFN). Just getting started.
13. Platinum Group Metals (PLG). Just getting started.
*14. Thompson Creek Metals Company Inc (TC). Just getting started.
*15. DRD Gld Ltd Adr (DROOY). Fuse almost lit.
*16. Golden Star Resources (GSS). Fuse almost lit.
18. Northgate Minerals Corp (NXG). Fuse almost lit.
*19. Stillwater Mining Co (SWC). Fuse almost lit.