BullMarketRun.com

A surging U.S. dollar has put pressure on gold prices this morning…gold is near its low of the day, down $11 an ounce to $1,091 (as of 8:30 am Pacific time)…we’re keeping a close watch on the CDNX which is holding up reasonably well so far in the face of weak markets this morning…the CDNX is down 6 points to 1555…the next several days are going to be critical from a technical standpoint for the Venture…as we mentioned, the Venture’s declining 50-day moving average has raised a cautionary red flag for us…we’ll see how things play out in the coming days as the CDNX is put to a serious technical test with gold under pressure and month-end just around the corner…a bullish scenario would be if the Venture can hold at or above its current 50-day moving average (1540)…a breach of that support would likely take the Index down to secondary support at 1500, just above its 100-day moving average…we are cautious at the moment and less eager to speculate…Gold Bullion Development (GBB, TSX-V) remains a special situation in the current environment, however…GBB has very strong support in the mid-20’s and bounced back quickly this morning after touching 23.5 cents in early trading…it’s currently at 25.5 cents, down half a penny…the stock’s recent overbought condition is unwinding, so the trading action we’re seeing is very healthy and necessary from a technical standpoint and lays the groundwork for an assault on potential all-time highs with GBB in the near future…Richfield Ventures (RVC, TSX-V), another very attractive bulk tonnage situation, is beginning to pull back now after recently running to a new 52-week high of $2.25…depending on the markets, we may see Richfield retreat to between $1.50 and $1.80 which are the 50 and 20-day moving averages, respectively…