BullMarketRun.com

Our regular Week In Review feature (Parts 1, 2 and 3) will be posted during the day tomorrow (Monday).  Canadian markets are closed Monday due to Family Day while U.S. markets are closed for President’s Day.

As of 6:05 pm Pacific time Sunday, Gold is ahead $6 an ounce at $1,395 while Silver has hit a new 30-year high and is currently at $33.07, a gain of 41 cents.

We are working on a series of important articles for the coming week.

Gold has traded in a range of $1,380 to $1,389.50 today while Silver has hit a new 30-year high…as of 7:15 am Pacific, Gold is unchanged at $1,386 while Silver is ahead 31 cents at $32.09…the U.S. Dollar Index is up slightly at 77.93…Chinese monetary authorities, in another attempt to cool off inflationary pressures in that country, have again raised the reserve requirement for Chinese banks by 50 basis points, the second such move this year after six reserve increases in 2010…no major U.S. economic reports are coming out today but traders will be keeping a close eye on developments at this weekend’s Group of 20 meeting in Paris…currency, trade and sovereign debt issues will dominate the meeting as well as concerns about rising commodity prices…the Dow hit its highest level since June 5, 2008, yesterday…the CDNX, after a 22-point jump yesterday, is down 2 points to 2420 in early trading…Batero Gold (BAT, TSX-V) is hot again this morning after releasing new drill results yesterday from its La Cumbre Property in the Quinchia District, very close to where Seafield is exploring…Batero’s eighth hole at La Cumbre returned a world class 591.50 metres grading 0.72 g/t Au and 0.13% copper…the company is operating with four rigs 24/7…the stock climbed $1.02 yesterday and is currently up another 38 cents at $4.31 for a market cap of just under $200 million…Batero’s success has spilled over somewhat into Seafield which gained 2.5 cents yesterday and is up another penny this morning at 40 cents…Gold Bullion Development (GBB, TSX-V) is stabilizing after plunging from a high of 77 cents Tuesday to a low of 52 cents Wednesday and yesterday…there is very strong technical support in the low 50’s as John pointed out in his chart last night and a recovery does seem to be underway…we continue to examine Tuesday’s results and we’ll be posting an article on the fundamentals by early next week…Gold Bullion is currently ahead 1 penny at 56 cents…Abcourt Mines (ABI, TSX-V) has enjoyed a good week after reporting strong drill results Tuesday from its Abcourt-Barvue Silver-Zinc Project near Val d’Or…the current 10,000 metre drill program is 40% complete and accomplishing its goal of upgrading and increasing the 43-101 reserves and resources…with silver at new 30-year highs, ABI is looking better than ever especially with a market cap of only $23 million…a major drill program continues, meanwhile, at Abcourt’s Elder-Tagami Gold Property near Rouyn…Abcourt is getting very positive results from there as well and should also be able to substantially upgrade and increase resources…the goal is to put Elder back into production by the end of next year…ABI is unchanged at 21 cents…we’re keeping a close watch on Cadillac Mining (CQX, TSX-V) as we suspect the company may be considering near-term exploration plans for its “Wasa” claims that adjoin Richmont’s Wasamac Property 15 kilometres west of Rouyn-Noranda…Richmont reported a huge increase in resources yesterday for Wasamac (inferred resources more than tripled) and this certainly has implications for Cadillac…CQX is currently up a penny at 31.5 cents…technically, Cadillac’s 20-day moving average (SMA) has reversed to the upside which is yet another bullish sign on top of the ones John pointed out in his chart this morning…Currie Rose Resources‘ (CUI, TSX-V) chart is also looking healthier these days…CUI is half a penny higher this morning at 18.5 cents…

John: Yesterday, Cadillac Mining (CQX, TSX-V) gapped up a penny on strong volume to 30 cents, rose to a high of 31.5 cents, slipped to a low of 27 cents and then staged an impressive recovery to close at 31 cents, a gain of 2 pennies (6.9%) on CDNX volume of 388,000 shares.  This has been a BMR favorite since early December when we introduced it to our readers at 23 cents. It surged to a high of 50 cents by early January, retraced to a low of 21 cents February 3, and now appears to be in the early stages of a powerful comeback or new uptrend thanks in part to a major increase in 43-101 resources for Richmont’s Wasamac Property.  The structure hosting Gold mineralization at Wasamac is believed to dip northward toward ground held 100% by Cadillac.  In early trading this morning (as of 6:45 am Pacific), Cadillac is off 2 pennies at 29 cents but the chart is looking potentially explosive.

Looking at the 4-month daily chart, we see that after the flagpole (from November 25 to December 13) the stock traded within a horizontal trend channel between 32 cents and 42 cents from Dec. 14 to Jan. 19 (between vertical orange line and vertical blue line) except for a bull fake on Jan. 4 when the price reached a high of 50 cents only to retrace to trade within the channel.

On Jan. 20 CQX broke below the 32 cent level and between then and now has traded within another horizontal trend channel between 24 cents and 32 cents. The trading in the last 2 days has been bullish (2 white candles) with an increase in volume each day. Previous to Wednesday the average daily volume had been decreasing due to consolidation.

The black Fibonacci set with a seed wave between 7 cents and 42 cents indicates the next Fibonacci level is at 63 cents (we caution that this is not a BMR price target as we don’t give price targets but a potential and  theoretical Fibonacci level based on technical analysis).  There is strong support (horizontal green line) at 24 cents which coincides with the Fibonacci 50% retracement level. The next main resistance levels are at 32 cents and 42 cents.   Yesterday’s trading put the closing price above the supporting EMA(20), a very bullish sign.

Looking at the indicators:

The RSI has broken above the 50% level.  At the close yesterday it was sitting at 54% and pointing up – bullish.

The Chaikin Money Flow (CMF) indicator shows that since the beginning of February the selling pressure has been declining and today the buying pressure was bullish, another very positive sign.

The ADX trend indicator has the +DI (green line) at 22 and pointing up and above the -DI (red line) at 17 and pointing down. The ADX (black line) trend strength indicator at 17 is pointing down but flattening out, indicating a weak bullish trend.

Outlook: The chart pattern, volume and indicators all point to Cadillac attempting to break above the top of the channel at 32 cents in the immediate future. As always, perform your own due diligence.

Note:  The writer holds a position in Cadillac Mining.

Welcome to our site, or at least the initial version of it!  BMR has been online for over a year now and strictly through word-of-mouth we have built a large and loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.    An important component of this site will always be original research on small and undiscovered junior resource companies, mostly in the Gold exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely in order to make it work for us.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

John: Today, Gold Bullion Development (GBB, TSX-V) opened at 53 cents, fell to a low of 52 cents and then climbed and closed at its high of 55 cents. It gained 2 pennies on CDNX volume of 1.7 million shares.  A bullish day and a welcome sight after GBB plummeted from a high of 77 cents Tuesday following the release of new assay results from Granada.  Jon is working on an article covering the fundamentals which should be reassuring to many.  Tonight, let’s see what the Gold Bullion chart is telling us after the events of the past three days.

Looking at the 6-month daily chart, we see that up until Tuesday the price was forming a bullish ascending triangle bounded by the top blue horizontal line and the green sloping line. This triangle is a bullish continuation pattern and the expectation was that an attempt would be made within a few days for the price to break above the 77 cent resistance.  Tuesday’s trading brought an abrupt end to these expectations as the stock started to fall soon after the opening bell when news hit the market suddenly (GBB’s timing and management of this release was poor in our view).    Later in the afternoon we saw the stock bounce up from the 53 cent level to close at 59 cents.

On Wednesday the selling continued and the price fell throughout the day to a low of 52 cents and a close of 53 cents.  With the strong shaved white candle today, however, the bulls have staged an effective counter-attack to wrestle control back from the bears.  A base is being formed with a strong support band between 52 and 53 cents. This support band coincides with previous pivot supports in August and September.  The blue Fibonacci set shows the retracement resistance levels are at 62 cents (38.2%), 65 cents (50%) and 68 cents (61.8%). Notice how well these levels coincide with the chart resistance levels.

Looking at the indicators: The RSI(5) is oversold and at 20%, pointing up and thus trying to reverse – bullish.

The Slow Stochastics has the %K (black line) at 14%, pointing down and below the %D (red line) at 35% which is also pointing down. No sign of a reversal here because the period level is 14 days.

The On Balance Volume (OBV) indicator shows that at the start of the decline on Tuesday the OBV (black line) was in concert with the SMA-20 (purple line), thus it gave no indication  that a decline was imminent. Look for the OBV to turn up once a solid base has been formed.

Outlook: Trading today was the first sign of stability in the market and also a positive sign for a solid base and the start of a recovery.

Note:  The writer holds a position in Gold Bullion Development.

John: Yesterday, Currie Rose Resources (CUI, TSX-V) opened at 18 cents, fell as low as 17 cents and then climbed and closed at its high of 18.5 cents.  That was a gain of half a penny for the day on CDNX volume of 702,000 shares.   Currie Rose has traded between 17.5 and 18.5 cents so far today through 10:05 am Pacific, the time of this posting.  It is presently off a penny at 17.5 cents but the chart is looking very favorable as outlined below.

Looking at the 4-month daily chart, we see that the stock price rose to a high of 47.5 cents in December.   This move started in July at 4 cents (not shown on the chart). From the high in December the price retraced to a low of 15 cents, clearly oversold as indicated by the RSI and Slow Stochastics, before rebounding to a high of 22.5 cents on February 2 to eliminate the oversold condition. This retracement to 15 cents was equal to a 61.8% Fibonacci retracement of the previous move up which validated the retracement (if the retacement had exceeded the 61.8% it would have been classed as a failure and its low would have been suspect).

For the last 8 sessions the price has traded in a horizontal trend channel bounded by the top blue line and the green bottom support line. The candles for the past 2 days have been bullish hammers and the volume has also increased for the last 2 days.  It’s lighter so far today.   There is a resistance band between 20 cents and 22.5 cents with additional resistance levels at 29 cents and 37.5 cents (blue horizontal lines).  Strong support exists at the 15 cent level (horizontal green line).

Looking at the Indicators: The RSI has formed a flat “W” formation at the 45% level – bullish.

The Slow Stochastics have also formed a flat “W” formation with both the %K and the %D at 37% – bullish.

The Chaikin Money Flow indicator shows the selling pressure is declining (sloping mauve line).

Outlook: The chart pattern, volume and indicators are all very favorable here and suggest the potential for a significant upside in Currie Rose in the near future.

Note:  The writer holds a position in Currie Rose Resources.

Gold continues to show strength and has managed to battle through importance technical resistance between $1,370 and $1,380….as of 8:45 am Pacific, the yellow metal is at $1,383 for a gain of $8 an ounce…Silver has climbed 44 cents to $31.12 while the U.S. Dollar Index is down one-fifth of a point at 78.03…fresh tensions in the Middle East are helping Gold today along with a more bullish technical picture…China’s appetite for Gold remains very strong…China consumed 175.2 tons of Gold in the 4th quarter of 2010, bringing its grand total for the year to 579.5 tons or 18.5 million ounces according to the World Gold Council…by comparison, the U.S. bought 203.3 tons last year…it appears China is trying to legitimize its currency by ramping up its Gold holdings…aggressive buying of Gold and Silver by China’s central bank is generating a lot of different theories…the CDNX is ahead 7 points at 2407…Gold Bullion Development (GBB, TSX-V) is stabilizing, up a penny this morning at 54 cents…John is working on a new GBB chart for this evening…we’re still sorting through Tuesday’s GBB news and trying to connect some of the dots with so many drill holes…Sidon International Resources (SD, TSX-V) made a nice move yesterday as it jumped some technical barriers and closed at 16.5 cents (just below the declining 50-day moving average (SMA) where there is some obvious resistance) on volume of over 7 million shares…the move could have been due to speculation regarding upcoming drill results…Sidon has pulled back 1.5 cents this morning to 15 cents…the new technical support is at the 100-day SMA just slightly above 14 cents…Richmont Mines (RIC, TSX) came out this morning with an impressive new resource estimate for its Wasamac Property, 15 kilometres west of Rouyn-Noranda…as we speculated, the numbers have gone up substantially and the company has announced 35,000 metres of additional drilling for this year…this not only has implications for Richmont, of course, but also for Cadillac Mining (CQX, TSX-V) whose Wasa claims represent the possible down-dip extension of the deposit…there are also some very interesting VMS targets on Cadillac’s 100%-owned ground…the new measured and indicated resource estimate for Richmont’s Wasamac is 5.1 million tonnes grading 2.51 g/t Au (411,000 ounces) while inferred resources now stand at 11.5 million tonnes grading 2.72 g/t Au (1 million ounces, more than triple the previous inferred estimate)…Richmont President and CEO Martin Rivard stated, “Results announced today confirm that the Wasamac property has the potential to play a pivotal role in our plan to transform Richmont into a 200,000-plus Gold ounce producer”…we suggest investors perform their due diligence on Richmont which is currently up 9 cents to $4.91…the key for Cadillac will be to seize on the opportunity this presents for them at Wasamac…after attending their AGM Tuesday in Vancouver, we believe they will get aggressive in exploring the potential of their ground next to Richmont especially after this morning’s news…Cadillac is currently unchanged at 29 cents and the chart is looking more bullish…Bonterra Resources (BTR, TSX-V) came out with some interesting assays from the first six holes of its 2011 drill program at its Eastern Extension Gold Project, 170 kilometres northeast of Val d’Or…results included 14 metres grading 8.01 g/t Au…the Eastern Extension is open laterally and downdip with a new zone discovered that extends the strike of the mineralized envelope to the west…the market has a tendency sometimes to sell on news, as we’ve seen with GBB, and BTR is currently off nearly a nickel at 49.5 cents…Bonterra has a healthy looking chart, however, and is certainly worth keeping a close eye on…Visible Gold (VGD, TSX-V) is off half a penny at 41 cents…we see VGD as one of the major up-and-comers along the Cadillac Trend and it’s armed right now with approximately $9 million in cash…it has launched a very aggressive 2011 exploration program, part of which covers ground held by Cadillac as the two worked out a joint venture in December…Richfield Ventures (RVC, TSX-V) has formed a nice base recently around the $5 level and it’s now starting to move higher on increased volume which is always a positive sign…RVC has gained 16 cents morning to $5.35…its all-time high is $5.49 (February 8)…Seafield Resources (SFF, TSX-V) seems to be stabilizing in the vicinity of its 100-day rising moving average (SMA) at 39 cents…SFF is currently 2.5 cents higher at 39 cents…the primary trend with Seafield remains up given the bullish alignment of the 100, 200 and 300-day moving averages…the 200 and 300-day provide excellent technical support in the high 20’s, so the fact the stock snapped back from a 31-cent low the other day should not have been a surprise…in terms of assessing risk, that appears to be the downside floor while of course there’s a great deal of upside potential given the geological dynamics of Quinchia…

Gold hit a fresh 4-week high this morning and has traded in a range between $1,369 and $1,380 today…the bulls hold the upper hand at the moment and a convincing move through $1,380 would be a key technical development…physical buying from Asia is reported to be strong which is underpinning prices and limiting the downside…as of 7:30 am Pacific, the yellow metal is down $4 an ounce at $1,369…Silver is 32 cents lower at $30.46 while the U.S. Dollar Index is up slightly at 78.67…U.S. core producer prices (excluding food/energy) rose a larger than expected 0.5% for January which should bring a smile to Ben Bernanke’s face as the Fed is trying to kick-start inflationary pressures…that’s a tricky game to play and the Fed will need to be very careful…other economic data out this morning shows U.S. housing starts also rose more than they expected in January to their highest rate in 4 months…the CDNX, which has gained 47 points the last three trading sessions after touching its 10-day moving average (SMA) last Thursday, topped the 2400 level for the first time since early July, 2008, this morning…the Index got as high as 2403.64 before pulling back slightly…it’s currently up 4 points at 2398…research in Vancouver yesterday, including attending the Cadillac Mining (CQX, TSX) AGM, prevented us from commenting during the day on breaking news regarding Gold Bullion Development (GBB, TSX-V), Seafield Resources (SFF, TSX-V), and Abcourt Mining (ABI, TSX-V), and for that we apologize…Gold Bullion came out with a major batch of new assays from Granada, some of which were very good, though the stock took a hit on a “sell on news” mentality and dropped 16 cents to 59 cents…we’re seeing some follow-through weakness this morning with GBB down a further 4 pennies at the moment at 55 cents…there is strong technical support in the low-to-mid-50’s…we’re still assessing the news release but our faith in the Granada Gold Property remains as firm as ever…the Eastern Extension and the Preliminary Block Model appear to be connecting geologically and that is very significant…the discovery of high grade Gold (162.75 g/t Au over 1.09 metres) at depth in the Eastern Extension (hole #113) is extremely interesting and was likely a contributing factor to Adventure Gold’s (AGE, TSX-V) breakout yesterday to a new all-time high of 67 cents (AGE is up another 11 cents this morning to 78 cents as John correctly called a breakout on this play)…the fact the drills will be turning soon (March) in LONG Bars Zone 2 (Aukeko) is going to generate a lot of excitement as this is an area that holds great promise…if Gold Bullion is able to link LONG Bars Zone 1 with #2 over a kilometre away, look out…with over 100 drill results over the past year, it’s quite evident to us that a mine is in the making at Granada but much more work is ahead…Frank Basa and his team have a strong determination to succeed…Seafield President and CEO Tony Roodenburg countered a very unfortunate Stockwatch article Monday morning regarding Ian Park with a clear and reasonable statement yesterday…there was also a Seafield conference call that we didn’t have the opportunity to listen to but the bottom line with this situation is what we stated Monday…Seafield has a first-rate project at Quinchia but the focus of investors needs to shift from the recent distractions of Miraflores and Park…the porphyry targets at Dos Quebradas and nearby Santa Sofia and La Loma are showing major blue sky potential, and now Seafield is bringing in a second rig which will be very helpful…they are ramping up exploration and they have all the cash they need to make some big things happen down there…SFF recovered yesterday and is currently off a penny at 37 cents…Abcourt Mines (ABI, TSX-V) came out with some really nice drill results yesterday (including 12.7 metres grading 152.26 g/t Ag) from its Abcourt-Barvue zinc-lead-silver project near Val d’Or…4,000 metres of a 10,000 metre drill program have been completed as the company tries to upgrade and augment existing reserves and resources…Abcourt-Barvue is a former producer that potentially could be brought back into production as an open-pit operation with robust economics as detailed by GENIVAR’s 2007 Feasibility Study…we also like Abcourt’s Elder-Tagami Gold Project near Rouyn where a drill program is also in progress…Elder is also a former producer and significant extensions to the former mine are being discovered…Abcourt already has much of the infrastructure in place for production at Elder…ABI is currently off a penny at 19.5 cents…Cadillac Mining’s AGM was very interesting yesterday as the company went into some detail on its recently acquired project (Gold-silver) in Utah as well as its Quebec properties, in particular its 100% owned “Wasa” claims contiguous to Richmont’s (RIC, TSX) Wasamac Property where results are showing potential for a major increase in the new 43-101 resource estimate which is expected any day now…Cadillac has aggressive plans for 2011 and with a current market cap of just $6.25 million, we suggest investors perform all the immediate due diligence they can on this opportunity…we are very excited about this company’s prospects…Cadillac’s exploration partner in northwestern Quebec, Visible Gold (VGD, TSX-V), also has us intrigued as we see this company quickly emerging as one of the most aggressive players in the area with a current treasury of $9 million…VGD’s chart has improved markedly in recent sessions and the stock is currently unchanged at 44 cents…