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Gold has traded between $1,266 and $1,278 so far today…as of 8:30 am Pacific, bullion is up $1 an ounce at $1,270…Silver is off 2 cents at $19.14…Copper has added a penny to $3.15…Crude Oil is 61 cents lower at $94.93 while the U.S. Dollar Index has jumped three-quarters of a point to 83.59 thanks in part to the euro hitting a 14-month low…

The European Central Bank acted boldly today in an effort to stimulate the euro zone’s fragile recovery and boost inflation…whether these measures will actually work, and what impact if any they may have on Gold, are good questions…the ECB lowered all of its interest rates to fresh record lows, took its rate on bank deposits further into negative territory, and also announced two new programs under which it will buy asset-backed securities and covered bonds issued by euro zone banks…

“This is quite complex package of measures,” ECB President Mario Draghi stated in a news conference following the announcement.  “The purpose is very different from previous programs…the aim is to increase the measures that produce credit-easing…and also to significantly stir the size of our balance sheet towards the dimensions it used to have at the beginning of 2012.”

Draghi said the ECB has downgraded its euro zone growth forecasts for 2014 and 2015, to 0.9% and 1.6%, respectively…he added that growth in the second quarter had been weaker than expected and that incoming third quarter data suggested the economic recovery was slowing…he also said the ECB did not intend to cut interest rates any further…

Today’s Equity Markets

Asia

Asian markets were mixed today…China’s Shanghai Composite hit another 14-week high, adding 18 points to 2307…Japan’s Nikkei average, meanwhile, took a breather and snapped a 3-day winning streak after ending at 7-month highs in the past two sessions…

Europe

European markets strengthened after the ECB news and finished sharply higher today…

North America

The Dow is up 45 points as of 8:30 am Pacific…

The pace of growth in the U.S. services sector rose in August to its highest level since 2005, according to an industry report released this morning…the Institute for Supply Management said its services index rose to 59.6 last month from 58.7 in July…the August reading was the highest since August 2005 and topped economists’ forecasts for 57.5, according to a Reuters survey…

Private sector job creation in the U.S. slowed modestly in August, according to a report this morning from ADP and Moody’s Analytics…today’s number fell slightly short of expectations, showing employment growth of 204,000 positions, off a touch from the downwardly revised 212,000 in July and well off the 297,000 in June…

The Labor Department tomorrow will give the latest reading on the important non-farm payrolls growth, seen at up 220,000 in August. Recent improving U.S. economic data suggests the Federal Reserve will continue to wind down its quantitative easing of monetary policy by the end of this year, and will likely begin to raise interest rates sometime in 2015.. The Labor Department is set to report job figures for August on Friday; net job growth has exceeded 200,000 for six straight months through July.

Yesterday’s Federal Reserve “beige book” survey was the third straight report in which all of the Fed’s district banks reported either modest, moderate or improving economic growth…it spotlighted improvement in consumer spending, tourism and manufacturing from mid-July through late-August…retailers reported better sales during the early back-to-school shopping season…the report comes ahead of the next FOMC meeting set for Sept. 16-17…scant evidence of wage pressures should give the Fed greater breathing room as it considers when to raise rates…

The TSX is flat as of 8:30 am Pacific while the Venture is off 2 points at 1008 (see updated charts below)…

TSX 5-Year Weekly Chart Update 

This TSX 5-year weekly chart shows an amazing run – a gain of 33% – since the low of 11759 at the end of June last year…as you can see below, the Index has remained within an impressive upsloping channel since the summer of 2013 and has repeatedly tested the top of that channel this year…given the continuing very strong momentum, watch for a potential near-term breakout above that channel, though it’s possible that could turn out to be a “false” breakout which is then followed by a correction to unwind overbought conditions…

Venture 5-Year Weekly Chart Update

The Venture’s 5-year weekly chart shows a very consistent and sustainable pattern with RSI(14) continuing to climb a trend line but well below overbought levels at 52%…note also how the rising 200-day moving average (SMA), currently at 992, has provided rock-solid support throughout the entire year after the Index finally pushed above this SMA at the beginning of January…the next measured Fib. resistance levels are 1058 and 1119…

Integra Gold Corp. (ICG, TSX-V) Update

Integra Gold (ICG, TSX-V) is one of the Venture volume leaders so far this morning, up 4 cents at 29 cents through the first two hours of trading after the release of some interesting news…

ICG has entered into an asset purchase agreement to acquire the Sigma-Lamaque milling facility and mines, adjacent to the company’s Val d’Or Lamaque Project (this reminds us a lot of the Discovery Ventures‘ (DVN, TSX-V) situation when it cut a very attractive deal earlier this year in similar circumstances for the Max mine and mill facilities in southeast B.C.)…ICG is acquiring these assets from the court-appointed receiver for Century Mining Corporation…the aggregate purchase price is $7.55 million, comprising $1.8 million in cash and 25 million common shares valued at $5.75 million (based on a share price of 23 cents)…the transaction has received conditional approval from the Venture Exchange and has been authorized by the Superior Court of Quebec, who granted a vesting order pursuant to the receivership process…closing is scheduled for next month…

Great deal for $7.55 million which is why the ICG share price is up this morning…should improve the economics of this project…the assets to be acquired by Integra include a permitted 2,200 tonne per day milling complex and tailings facility adjacent to Lamaque South, as well as permitted underground infrastructure including three portals, mechanical shop, office, dry, equipment, and all mining concessions and mineral claims on the past-producing property…

Discovery Ventures Inc. (DVN, TSX-V) Update

Speaking of DVN, it continues to accelerate and is now threatening to push through chart resistance at 40 cents as you can see below…DVN is up half a penny at 40.5 cents as of 8:30 am Pacific…

Decade Resources Ltd. (DEC, TSX-V) Update

Encouraging drill hole result yesterday from Decade Resources‘ (DEC, TSX-V) Bow Property near Stewart, but what was disappointingly missing was a detailed breakdown of the 49.6-m interval that DEC reported as 15.25 g/t Au (from 44.6 to 94.2 m)…only one shorter section was provided – 12.2 m grading 56.7 g/t Au…DEC opened at 23 cents after the pre-market halt, closed up 4.5 cents on volume of more than 5 million shares (all exchanges), but has backed off this morning…as of 8:30 am Pacific, DEC is off 2.5 cents at 19 cents…

Results from five more holes are pending…we had a request from a few readers for a DEC chart…this 3-year weekly shows a band of resistance between the Fib. 21 cent level and chart resistance at 25 cents…strong support at 15 cents where there was a confirmed breakout…as always, perform your own due diligence…

Ascot Resources Ltd. (AOT, TSX-V)

Ascot Resources (AOT, TSX-V) continues to drill aggressively with three rigs at its Premier Property that covers more than 100 sq. km near Stewart and includes the past producing Premier high-grade mine…this is a potentially very prolific fundamental play in our view…historic work and recent Ascot drilling indicate a system where mineralization is focused in a structural zone with widths ranging from 30 m to 150 m, with a known strike length of over 1,600 m and a dip length of up to 1,200 m…

AOT climbed for 12 out of 13 sessions between August 11 and August 27, so the pullback from a multi-year high of $2.40 August 28 is not surprising…temporarily overbought conditions are unwinding and support is holding around the $1.90 level which was previous Fib. resistance…

Note:  Jon holds a share position in DVN.

Gold has traded between $1,260 and $1,272 today after yesterday’s drop to begin the month of September…as of 8:15 am Pacific, bullion is up $2 an ounce at $1,268…Silver is up 2 cents at $19.16…Copper is down 3 pennies to $3.13…Crude Oil is up $1.29 a barrel to $94.17 while the U.S. Dollar Index has eased slightly at 82.91…

Bullion closed below strong support in the $1,270’s yesterday, so some additional weakness is certainly possible in the event there’s no immediate reversal…the next band of support, as shown in John’s chart Sunday, ranges from $1,240 to $1,260…

HSBC said today that it sees Gold trading in a range of $1,150 to $1,350 an ounce during the remainder of 2014 in a market “searching for a new equilibrium” with a number of offsetting factors…the bank left its 2014 average price forecast at $1,292 an ounce and listed 2015 and 2016 forecasts of $1,310 and $1,345…

“Gold is searching for a new equilibrium after last year’s price plunge, which ended the more than decade-long bull run,” HSBC said (our emphasis, there’s no evidence that the long-term bull run in Gold is over – only a decade-plus winning streak came to an end last year ).   “The massive Gold-exchange-traded funds (ETFs) outflows of 2013 – which were instrumental in driving prices lower – have largely abated. Another positive is that net long positions on the Comex are rebuilding. Other factors supporting prices are that mine production gains are plateauing, scrap supplies are down and central bank demand is steady.”

Conversely, expectations for dollar strength are likely to create headwinds for further rallies, HSBC said. Also, the tapering of asset purchases by the Federal Reserve and low global economic growth and inflation rates discourage a return of institutional investment, although these are already factored in by the market, the bank said…

ISIS and Gold

Gold has yet to react to the extremely dangerous situation unfolding with the strengthening of Islamic State (ISIS) and the potential major repercussions stemming from the magnitude and ferocity of this highly-funded terrorist organization which has essentially declared war on the United States and the West…there is only one way to defeat this kind of evil before it strikes domestically in the United States, Canada, Great Britain or elsewhere, and and it’s not going to be pretty…is there is a Western leader up to the task?…

Shockingly, or perhaps not so shockingly, President Obama was given detailed and specific intelligence about the rise of Islamic State as part of his daily briefing for at least a year before the group seized large swaths of territory over the summer, a former Pentagon official told Fox News…the official – who asked not to be identified because the President’s Daily Brief is considered the most authoritative, classified intelligence community product analyzing sensitive international events for the president – said the data was strong and “granular” in detail…the source said a policymaker “could not come away with any other impression: This is getting bad.”

Obama, unlike his predecessors who traditionally had the document briefed to them, is known to personally read the daily brief…the former Pentagon official, who has knowledge of the process, said Obama generally was not known to come back to the intelligence community with further requests for information based on the daily report…

Harper’s talk is cheap…a NATO plan to get its members to agree to significantly boost their military spending has been derailed by Canada and Germany before it could be even presented to alliance leaders tomorrow when they meet in Wales, according to news reports this morning…Canada is under pressure – mostly from the United States and Britain – to dramatically increase its defense budget over the next 10 years to meet the NATO benchmark of 2% of gross domestic product…according to the latest NATO figures, the Harper government spends 1% per cent of GDP on defense, just slightly ahead of financially-troubled Spain, the Slovak Republic, Hungary, Luxembourg, Lithuania, and Latvia…

U.S. Dollar Index Updated Chart

There appears to be little doubt, based on this 2.5-year weekly chart, that the U.S. Dollar Index is going to challenge the 83.5 to 84.5 resistance band – exact timing of that is uncertain but likely in the near future…if and when it’s trading in that resistance band, very overbought conditions will exist and a correction will ensue…the fact that Gold has held up as well as it has in light of the sharp rise in the greenback since the spring low is encouraging…

WTIC Updated Chart

Interestingly, Crude Oil is currently sitting at RSI(14) support on this 12-year monthly chart…decision time is drawing near (weeks, a few months?) for WTIC which has retraced after breaking out above a downtrend line and a symmetrical triangle last year…key support is $90, key resistance is $110…

Today’s Equity Markets

Asia

China’s Shanghai Composite rose to a 14-month high overnight, gaining another 23 points to close at 2289 thanks to stronger-than-expected economic data…HSBC’s China services PMI expanded at its strongest pace in 17 months in August while the government’s official PMI rebounded from July’s six-month low…also helping the Shanghai was Australia’s GDP for the April-June period which rose 0.5% on quarter, above expectations…

Japan’s Nikkei average reached a 7-month high, lifted by a weaker currency as the yen hit an 8-month low against the greenback…

Europe

European markets pushed strongly higher today amid the possibility of a “cease-fire” between Russia and Ukraine.  “Mutual understanding was achieved concerning the steps which will enable the establishment of peace,” the Ukrainian presidential press office said on Wednesday, following a telephone conversation between President Petro Poroshenko and Russia’s Vladimir Putin…surely, the Ukrainians can’t be that naive to trust Putin…

North America

The Dow has gained 58 points as of 8:15 am Pacific…the TSX is up 32 points while the Venture has added 3 points to 1014…

Venture 6-Month Daily Chart

As investors, we should not allow days like yesterday, with both the Venture and Gold under pressure, to distract us from the highly encouraging “Big Picture” for the Venture which is clearly evident in the long-term weekly chart which we presented again yesterday…

Keep focused on the primary trend for the Venture which is up – the 3-year weekly chart has not steered us wrong over the past year – while keeping an eye on the short-term chart which highlights near-term support and resistance levels…

Below is an updated 6-month daily chart…you can see that yesterday the Index reacted at chart resistance at 1027 and retraced to Fib. support at 1010…additional superb support is at 1000…at 53%, RSI(14) is hovering around support…keep in the mind that the Venture has put in a series of higher lows throughout the year, the last one being 990, so another low between 1000 and 1010 makes sense…

Pullbacks like yesterday aren’t to be feared in a market like this – they should be welcomed by investors…selectivity as always is key, especially now – we’re in a “selective” bull market at this stage…

Blackbird Energy Ltd. (BBI, TSX-V) Update

Our most recent chart update on Blackbird Energy (BBI, TSX-V) was last Thursday when John made note of a bullish “W” formation in the RSI(14) and the possibility of a breakout above the 30-cent resistance level…Friday, BBI closed at 32 cents on strong volume and followed that up with a 6.5-cent surge yesterday on 12.3 million shares (all exchanges) to close at 38.5 cents (the intra-day high was 40 cents)…the company announced the acquisition of more ground in the Alberta Montney…

Technically, BBI’s challenge now is to overcome measured Fib. resistance at 42 cents…it’s off a penny at 37.5 cents as of 8:15 am Pacific…as always, perform your own due diligence…

Houston Lake Mining Inc. (HLM, TSX-V)

A company worthy of our readers’ due diligence is Houston Lake Mining (HLM, TSX-V) which broke out above a long-term downtrend line earlier this year, retraced to new support, and then powered higher again beginning in early August…after hitting a multi-year high of 16 cents yesterday, chances of a minor pullback have increased, so “chasing this” is likely not the wisest strategy…this could, however, be a very interesting longer-term play with near-term potential as well depending, of course, on results…

Yesterday, HLM released results of two infill drill holes from its 2014 Phase II, 9-hole diamond drill program on the Pakeagama Lake pegmatite in Ontario…PL-011-14 intersected 1.68% lithium oxide (Li2O) over 104 m from 9.1 m to 104.7 m…PL-011-14, meanwhile, included a 12.8-m-wide high-grade lithium zone averaging 4.01% Li2O from 35 m to 47.8 m…results from 7 more holes are pending…

HLM President Trevor Walker stated, “These results with particular focus on the UIZ (high-grade) intercepts not only confirm grade from our maiden resource calculation but should increase the zone’s tonnage. These features of size and grade, combined with the pegmatite’s low inherent iron (less than 0.1 per cent iron oxide [see June 11, 2014, press release]) give HLM the confidence in its potential ability to economically produce a technical-grade quality spodumene product and/or concentrate that could appeal firstly to the established specialty glass and ceramics segment of the lithium market.  This could be possible in contrast to many others, who would require a sizable capital investment in order to remove and produce a low-iron product. We are pleased with these results and look forward to releasing pending assay results in the near future from the remaining drill holes on our phase II diamond drill program.” 

Bellow is a 10-year monthly HLM chart…note the sudden increase in buy pressure after dominant sell pressure since late 2007 (on the daily chart, look for support at the rising 10 and 20-day SMA’s, currently at 13.5 and 12 cents, respectively)…HLM is off half a penny at 15 cents on light volume as of 8:15 am Pacific…

Note:  John, Terry and Jon do not hold share positions in BBI or HLM.

 

Gold has hit a 2.5-month low as the U.S. Dollar Index continues to push higher and equity markets remain strong…as of 8:15 am Pacific, bullion is down $22 an ounce at $1,265…Silver is off 31 cents at $19.15…Copper is up a penny at $3.17…Crude Oil is $1.73 a barrel lower at $94.23 while the U.S. Dollar Index has jumped one-quarter of a point to 83.02…a test of the 84 resistance area certainly appears to be in the cards…

The rally in the greenback, which is pressuring Gold, is being driven by expectations that monetary policy in the U.S. is set to follow a different path than that of other major economies over the coming months…the dollar keeps climbing against key currencies…the euro has fallen to its lowest point in a year, the yen is edging closer to its weakest level of 2014, and the pound is lurching lower…the European Central Bank, which meets Thursday, may further cut interest rates or undertake additional stimulus measures, including an asset-backed securities-purchase program, to prop up a sputtering economy and address deflationary concerns…yesterday, data showed manufacturing activity in the euro zone in August slid to its lowest point in almost a year…

Bloomberg reported this morning that the value of precious metals held by China’s biggest lenders surged 66% from a year ago as banks lease more Gold to customers because tighter borrowing rules make it harder to lend funds…China is seeking to rein in credit by raising borrowing costs and cutting off lending to sectors considered at risk of default amid a property slump and rising number of bad loans…that’s prompting banks to hold more precious metals as they expand their Gold-leasing business because it’s not subject to loan caps and is considered off-balance sheet lending…

How This Month Has Started For Gold May Not Be How It Finishes

As shown in this chart from www.usfunds.com, history reveals that September is Gold’s favorite month – though that may not seem like the case today…the historical out-performance of Gold in September relates to India’s festival period, which extends from late August to October…the widespread use of Gold in festivals as gifts, prizes and decorations has consistently fueled demand in September…we’ll see how that long-term trend plays out this time around…

Geopolitical Dynamics – Long-Term Bullish For Gold

Enemies of the West have been emboldened in part by a lack of leadership from Washington…this can only be Gold-bullish for the long-term, and the negative consequences will ultimately force Western governments to substantially increase their defense budgets – hampering efforts at reducing deficits and debt…

NATO members meeting this week in Wales are expected to create “a very high-readiness force” to deal with Russian aggression in Ukraine and other international conflicts, NATO Secretary General Anders Fogh Rasmussen said yesterday…in a speech on the NATO website, Rasmussen said the fighting force will be part of an overall Readiness Action Plan that “responds to Russia’s aggressive behavior – but it equips the alliance to respond to all security challenges, wherever they may arise.”

British Prime Minister David Cameron yesterday proposed sweeping legislation to combat the “scourge of extremism” amid the fast and powerful rise of the extremist group Islamic State…Cameron officially asked the House of Commons to agree to several temporary measures he proposed late last week, including the power to seize passports of suspected British jihadists leaving the country and controlling where they can move within the country…

The leaders of the U.S. House and Senate intelligence committees criticized President Obama over the Labor Day weekend for failing to decide yet on whether to hit Islamic State targets in Syria and urged him ahead of this week’s key NATO summit to take decisive action before the militant group attacks on U.S. soil.  “His foreign policy is in absolute free fall,” Michigan GOP Rep. Mike Rogers, chairman of the House Permanent Select Committee on Intelligence, told Fox News Sunday…

Criticism of President Obama’s apparent disdain for foreign leadership is coming not only from the Republican side but from some liberal Democrats as well…California Senator Dianne Feinstein, chairwoman of the Senate Select Committee on Intelligence, said in a separate interview Sunday that Obama is perhaps “too cautious” in his approach to combating Islamic State.  “This is a group of people who are extraordinarily dangerous,” she said on NBC’s Meet the Press.  “And they’ll kill with abandon.”

Today’s Equity Markets

Asia

Asian markets were mostly higher overnight, led by strong gains in China and Japan…China’s Shanghai Composite surged 31 points to close at 2265 – its highest level since June 2013 – while Japan’s Nikkei average climbed 192 points to finish at a 7-month high of 15669…Indian shares hit their second consecutive record high this week after data showed the economy’s balance of payments for the April-June quarter remained in surplus for the third straight quarter…

Europe

European markets were up slightly today…a euro zone producer price index for July showed an expected fall of 0.1% for the month…

North America

The Dow was down moderately in early trading today but has recovered most of those losses and is down just 4 points as of 8:15 am Pacific…the S&P 500, meanwhile, has hit another record high…the TSX is off 10 points while the Venture has retreated 5 points to 1019 as of 8:15 am Pacific…

Blackbird Energy Inc. (BBI, TSX-V) hit a new multi-year high of 40 cents this morning after announcing that it has added to its Montney land position…BBI is up 7.5 cents at 38.5 cents as of 8:15 am Pacific on total volume (all exchanges) of nearly 5 million shares…Big North Graphite Corp. (NRT, TSX-V) is up a penny at 8.5 cents…news out this morning that NRT is being acquired by Flinders Resources Ltd. (FDR, TSX-V) in an all-share transaction (9 million Flinders‘ shares in exchange for 81 million Big North shares)…

Kaminak Gold Corp. (KAM, TSX-V) Update

Kaminak Gold Corp. (KAM, TSX-V) released results this morning from more than two dozen drill holes from its 2014 Phase I exploration program at the Coffee Project in the Yukon…encouragingly, a $2 million Phase II exploration program has just been launched and is targeting primarily Kona North and other high priority Gold-in-soil anomalies proximal to the current resource…this is being carried out in conjunction with the recently commenced Feasibility Study…

Phase I drilling successfully identified shallow, predominately oxidized Gold-bearing structures within the Kona North zone including a 28-m intercept returning 3.55 g/t Au from 14 downhole in CFD376 …drilling also extended mineralization 900 m along strike on the Supremo T3 trend and intersected high-grade Gold mineralization at Cappuccino…

Four diamond drill rigs and two RC percussion drills are now turning on the property, undertaking resource delineation infill, condemnation, geotechnical, hydrological and metallurgical drilling…KAM is off 2 pennies at 99 cents as of 8:15 am Pacific…

Venture 3-Year Weekly Chart Update

This 3-year weekly Venture chart remains irrefutably bullish…

1. Note how the RSI(14) recently tested support at its trend line and is pushing higher again;

2. The Venture has been out-performing Gold for more than a year and the divergence between the two is increasing – this is always a positive sign for the Venture and an indication that we’ve seen the bottom in Gold prices…

3.  A bullish reversal has occurred in the SS indicator for the Venture – the short-term trend and the primary trend are both pointing north.

As John’s 6-month daily chart showed Sunday, there is minor resistance at 1027 and 1039 en route to the March high of 1050, and the Index reacted at the 1028 level in early trading today…

Discovery Ventures Inc. (DVN, TSX-V) Update

Discovery Ventures (DVN, TSX-V) has climbed more than 50% since John’s 23-cent breakout call in early June…what’s driving DVN, which released more news this morning regarding its Willa Property in southeastern B.C., is the powerful combination of this high-grade Gold-Copper deposit and the company’s acquisition of the Max mine and mill facilities 135 km to the north…a lot of exploration money has been poured into the Willa over the years, though parts of it surprisingly are still very much under-explored…the historical resource, while high-grade, only makes sense to mine if the right mill solution exists…the fact that DVN has got its hands on a nearby modern facility for only $6 million changes everything as one can see by reading the Preliminary Economic Assessment for the Willa-Max Project released at the end of May…the estimated very low cap-ex for this project is a huge advantage, and the local area is in search of jobs and a boost in economic activity…while there is no shortage of steps the company still has to make to put the Willa into production, systematically they’ve been making all the right moves in our view – this also shows in the share price…they also have their eye on expanding resources at the Willa – plenty of undiscovered potential exists there…deposit grades of around 6 to 7 g/t Au and nearly 1% Cu aren’t easy to find these days…

DVN is unchanged at 38 cents as of 8:15 am Pacific…

Catalyst Copper Corp. (CCY, TSX-V)

Keep an eye on Catalyst Copper (CCY, TSX-V) which announced a management shake-up and a 30-cent private placement last Friday, subscribed for by the three new heavyweight directors – Richard Warke, Frank Giustra and Ian Telfer…

CCY jumped 14 cents Friday on the news to close at 49 cents…this 8-month chart shows an unconfirmed breakout from an ascending triangle…note the uptrend support line in place since the beginning of the summer…with the likes of Warke, Giustra and Telfer, patient investors could be rewarded handsomely with this new “catalyst”…CCY is unchanged on light volume as of 8:15 am Pacific…

Boxxer Gold Corp. (BXX, TSX-V) Update

Boxxer Gold (BXX, TSX-V) announced the closing last Friday of an over-subscribed private placement with the company raising $620,000 at 4 cents…on August 18, BXX broke out above a long-term downtrend line after announcing very encouraging “visuals” from the first hole completed at the company’s DOK Project (JV’d with Continental Precious Minerals Inc. – CZQ, TSX) – immediately south of the Sheslay district…

While the visuals from this first hole look promising, the likelihood of a lengthy economic intersection right off the bat is quite remote in our view…we would define success for BXX and CZQ as finding a trail of mineralization that they can follow, one that warrants additional drilling…

Boxxer has more paper (over 300 million shares O/S) than any shredder could handle, but BXX is worth keeping an eye on in the event there’s a pleasant surprise out of DOK, plus the company has some other interesting projects on the go including one in Idaho that we suggest readers take a look at…

Below is a 3-year weekly BOX chart…the technical set-up is intriguing with very strong support at 3 cents and a band of resistance between a nickel and 7 cents…one advantage of so many shares outstanding is liquidity for investors – especially if something big unfolds…BXX is off half a penny at 4 cents as of 8:15 am Pacific…

Silver Short-Term Chart Update 

This 6-month daily chart shows how extreme RSI(2) conditions in Silver persisted for most of June with a necessary and healthy unwinding of that overbought situation in recent weeks…however, RSI(14) is now back at 74% (entering today) and previous Fib. support between $19.50 and $20.00 has become resistance…Silver has fallen more than 10% from its July 10 peak just above $21.50 an ounce…support around $19 really needs to hold – it would be surprising if it didn’t…

Silver Long-Term Chart Update 

This 11-year monthly chart better illustrates the strong support Silver has at $19…the metal broke out above one important downtrend line in the second quarter, and that’s also what’s providing support at $19…RSI(2) closed last week at 30% – note the higher lows in this indicator over the past year…

Also note how the SS is moving up from a low bullish “W” while the ADX indicator shows the growing potential for a bullish +DI/-DI crossover this quarter or by year-end…bottom line – Silver is sluggish but continues to look highly attractive around current levels…

Note:  Jon holds a share position in DVN.