9:00 am Pacific
Gold and Silver are both exploding to the upside after a combination of events today including Bernanke’s speech which clearly laid the groundwork for more easing measures in the near future. John will have updated charts over the weekend, but these are very bullish developments.
The Venture Exchange, after a normal technical pullback to its rising 20-day moving average, is powering higher and we’re anticipating a reversal to the upside next week in the 50-day SMA which should provide fresh fuel for a push through resistance around 1250.
Over the long weekend we’ll be coming out with a special report on Rainbow Resources (RBW, TSX-V) which delivered strong news this morning regarding its drill program at the International Silver Property. The company has also suddenly closed a financing of nearly $1.1 million and granted over a million stock options above the market at 25 cents – very bullish signs. Technically, RBW has successfully tested support at its rising 50 and 200-day moving averages and RSI(14). With this morning news, we believe it’s well-positioned for a potential breakout next week through resistance at 25 cents. RSI(14) has formed a bullish “W” pattern, similar to what was seen in late July just prior to a 50% move to the upside.
The facts are that informed investors have evaluated RBW to be 18 cents per share. I speculate that 25 cents will be a good price to book profits for the investors who are informed.
Comment by Alexandre — August 31, 2012 @ 9:18 am
RBW news ts very encouraging, just bought more, next wweek will be interesting all around. richard l
Comment by richard l — August 31, 2012 @ 10:24 am
Back in CSL for a trade. We shall see next week. richard l
Comment by richard l — August 31, 2012 @ 10:33 am
Looking forward to the weekend update on RBW. Last few days, I have been adding good portions of RBW along with AZX (Alexandria Minerals). If you have a chance this weekend, take a look at what news is expected from AZX in the coming days about results that will show deposits moving westward PLUS newly announced 5000 meter drilling in same area! Expect it to show continuity and depth which will add to resource ind. and inf. of 1.375MM ounces plus copper. Agnico is a 10% shareholder; Iamgold 6% and management 13%.
Comment by Wallace — August 31, 2012 @ 10:51 am
John/Jon – Goldquest – a rebound is likely imminent…
Bert – We are sometimes inclined to be somewhat rude to the chartist &
writer, when things don’t pan out, as predicted. I will admit to having
a fair command of basic chart reading & i will also admit, that charting
in a rocky market, is like trying to chart a vessel’s course, during
hurricane conditions. Blaming the two John/Jons at times, is unfair, but
no doubt, their predictions may surprise you, as they become more to your
liking, when market conditions improve.. Anyway, back to my intention of
this post & that is to thank them for predicting a likely rebound in
Goldquest. I bought shares in this company recently & i appreciated the
chart & narrative. I also have shares in PRG, which if GQC moves, will
follow… I feel better already, as it is much better to praise than
criticize. R !
Comment by Bert — August 31, 2012 @ 2:46 pm
Wallace AZX looks very interesting buying gold in the ground for less than 10 dollars a ounce in Canada has to be a good find Thanks for sharing
Comment by gil — August 31, 2012 @ 4:17 pm