Gold has traded in a narrow range so far today through the overnight hours…as of 1:30 am Pacific, with this being a very early posting of Morning Musings, the yellow metal is off $5 an ounce at $1,558…Silver is 18 cents lower at $32.06…Copper is unchanged at $3.81…Crude Oil is down 52 cents at $106.35 while the U.S. Dollar Index is up nearly one-third of a point at 79.58…
For the near-term at least, Gold appears to be range-bound between strong support in the low-to-mid $1,600’s and resistance between $1,672 and $1,725 per ounce as John’s chart showed yesterday…as far as we’re concerned it’s VERY significant Gold has fallen below its 200-day moving average (SMA) which continues to rise and currently sits at $1,689…Gold has dropped below its 200-day SMA on 29 other occasions over the last decade and each time it recovered and eventually moved on to a new high…below is another chart from John showing Gold’s 100, 200 and 300-day SMA’s over the last 12 years…notice how the 300-day, in particular, has provided superb support with the exception of the brief period during the 2008 Crash…this long-term weekly chart also shows the RSI(14) at 47.73…that RSI level has consistently proven to be a good entry point for longs (notice how overbought Gold became last August/September – that condition has been cleansed)…
On the fundamental side, it’s clearly a positive for Gold that we’re currently experiencing one of the greatest global liquidity booms the world has ever seen…over the past seven months, there have been well over 100 stimulative policy initiatives from central banks around the world, according to ISI Group…you can see from Canaccord’s chart below that injecting liquidity into the global monetary system has given Gold the fuel to power higher year after year…the global monetary base has ballooned three times larger, with Gold increasing nearly six-fold…
Gold stocks, of course, have been under-performing relative to the metal but we’re convinced there will come a point when that will change dramatically…Silver has been out-performing Gold this year and that trend may very well continue…
Venture Exchange
Over the last 18 trading sessions the CDNX has retraced 50% of its gains since its December low of 1399 and its February 29 2012 high of 1696…while March has been a disappointing month, this kind of pullback is certainly not an unusual technical event – in fact it’s quite normal, albeit a little painful for some…what this demonstrates is how important it is to always have cash on hand to take advantage of bargains that appear due to unexpected swings or general volatility…
Below, John has chart updates on five situations (Rainbow Resources, Focus Metals, Corvus Gold, Encanto Potash and CMC Metals) that are looking especially interesting from a technical perspective…the fundamentals with each are also solid in our view…as always, however, perform your own due diligence…
Rainbow (RBW, TSX-V) enjoyed a strong day Friday and an interesting week is shaping up for this aggressive young exploration company with more details on its Big Strike Project in the West Kootenays and an “information session for market participants” Thursday afternoon in Calgary, immediately preceding the start of the Calgary Cambridge Resource Show…below is one of the best-looking charts you’ll see at the moment on the entire CDNX and we believe it speaks volumes for how this company is developing and the strength of its management…
Focus Metals (FMS, TSX-V)
Like Rainbow, Focus Metals (FMS, TSX-V) is on our “Strong Play” Group A list and has bucked the CDNX trend with a 12-cent gain so far this month after closing Friday at $1.16…this is a very compelling graphite and graphene story with considerable upside potential…the company just recently completed a $10 million bought deal financing…
Corvus Gold (KOR, TSX), Encanto Potash (EPO, TSX-V) and CMC Metals (CMB, TSX-V) have all pulled back this month but appear to be underpinned by strong technical support and are showing signs of bouncing back…
Corvus Gold (KOR, TSX)
Encanto Potash (EPO, TSX-V)
CMC Metals (CMB, TSX-V)
Note: John and Jon both hold positions in Rainbow Resources (Terry does not) with Jon adding to his position Friday.
Nice move in Gold and Silver up through resistance for the time being anyway. EPO news. SFF news – good for Miraflores and looks like Dosquebrados is on the back burner. Europe in the green and US stock futures up. I hope its a strong finish to the first quarter. 🙂
Comment by Andrew — March 26, 2012 @ 4:37 am
RGX taking out new highs today. Don we are making money again today welcome to the board nice to hear from you
Comment by gil — March 26, 2012 @ 6:11 am
A great read: 321gold.com/editorials/moriarty/moriarty032612.html
Comment by mike — March 26, 2012 @ 7:18 am
John .. what is the insignificance of GBB’s NR this am…??? thx for your opinion:)
Comment by Jeremy — March 26, 2012 @ 7:32 am
RBW three month chart good RGX chart better
Comment by gil — March 26, 2012 @ 7:41 am
RGX 83 cents target 3,30
Comment by gil — March 26, 2012 @ 7:44 am
Jeremy – I will be interested in Jon’s take on GBB’s nr too. My guess is that the forthcoming 43-101 is going to disappoint and GBB are pointing out that much work is yet to be done to prove up the resources and maybe higher grades? But, I’m probably wrong! 🙂
Comment by Andrew — March 26, 2012 @ 8:15 am
ANDREW are you a believer yet in rgx
Comment by gil — March 26, 2012 @ 8:38 am
Gil – very much so, I’m just waiting for the rsi to unwind. Perhaps the right hand side of the cup has been formed today and now a handle which will allow an entry point for me – please!
Comment by Andrew — March 26, 2012 @ 8:44 am
Understood Andrew… also anyone care to commment on why CAN and GCU are not participating in this mini-rally..???? dont get that at all… thx in advacne to any and all
Comment by Jeremy — March 26, 2012 @ 8:59 am
in reply to andrew and jeremy. everytime i think iv seen, heard, and read it all, a couple intellectual midgets like yourselves show up. the gbb nr this morning was great. very well written and timed just before first 43101. shows that management are on top of things and getting the word out to investors. you two obviously have no idea whatsoever as to gbb project so then why not keep quiet. you two are living proof that evolution does indeed move in reverse. ever wonder what your lives would be like had u had enough oxygen at birth??
Comment by heath — March 26, 2012 @ 9:13 am
thx for the vote of confidence heath.. but we asked for an informed and respected opinion.
Comment by Jeremy — March 26, 2012 @ 9:22 am
Heath, the GBB price may go up, it may go down……theres only one thing certain in life and thats the fact you are a complete and utter idiot!
Comment by mark — March 26, 2012 @ 9:46 am
thanks mark, i love how you never let an intelligent thought interrupt the flow of your conversation.
Comment by heath — March 26, 2012 @ 9:55 am
Hi Andrew, I’ve been occupied with personal stuff most of the morning which is why I didn’t respond earlier.
Anyway, my take on all of this is simple: Granada is about volume, volume, volume. I said that right from the beginning. The problem with GBB is that it had this wonderful discovery, and a potential Osisko-sized deposit, but it didn’t execute on the ground – it didn’t carry out the aggressive Osisko model on the ground. As it states in the NR, the gold per ounces drilled is comparable with Malarctic…….unfortunately for GBB, they just haven’t drilled enough. This was a monumental failure on the ground – a simple lack of people resources. Basa can blame GENIVAR all he wants but the buck has to stop with him – he’s the President and CEO. Anyway, going forward, I think Basa has a good group with SGS and I really like their drilling strategy at the moment (though there needs to be more drills on the property). This could obviously still become a multi-million ounce deposit – the potential strike length is phenomenal – but only if they drill, drill, drill………perhaps Osisko will realize the potential of this and simply take GBB out.
Comment by Jon - BMR — March 26, 2012 @ 10:56 am
Heath, it’s great that you have found this outlet, so that you can beak off and feel smart (for a change). Must be a refreshing change from the rest of your life!
Comment by mike — March 26, 2012 @ 11:14 am
where’s Bert these days??
awful quiet w/o him
Comment by ChartTrader — March 26, 2012 @ 11:24 am
RBW soft today?
I thought it was heating up for International news !
But it should come back before close.
Comment by Steve — March 26, 2012 @ 11:31 am
Thank you Jon for your informed and respected opinion!!
Comment by Jeremy — March 26, 2012 @ 12:39 pm
The problem with GBB from my point of view is the share structure, as well as it not being particularly cheap compared to other low grade, bulk tonnage, deposits.
Will soon be over 200million shares….lets say they prove up 2 million oz…at 20c thats $15 an oz. With the fact they arent exactly awash with cash its OK, but theres others out there with similar/better grades on the same/cheaper multiples. Theres also a lot of paper waiting to be sold on any move up to 20c+ from low fund raising. Until sentiment towards these types of deposits change I dont see a great case for investing in it.
Comment by Mark — March 26, 2012 @ 1:39 pm
Sorry, I meant to say at 20c thats $20 an oz
Comment by Mark — March 26, 2012 @ 1:42 pm
hahaha mark my man please do yourself a favor and keep quiet. you really are embarrassing yourself now! lmao, another post that should be on sh straight outa the boiler room. the exact opposite of every single thing you just said is true. so you are either lacking anything resembling intelligence or just another basher. id say a little from column a and little from column b.
Comment by heath — March 26, 2012 @ 2:56 pm
hey Gil … Just got home… Yes another great day !!!! With many more to come …I believe when(not if) the scalabilty is proven, the “M” property is spun off and all the mini plants are in production in a couple of years this will be at least a 10 bagger if we don’t get taken out sooner… I’ve been in RGX 1.5 years now and it seems all the ducks are in a row and things are starting to happen…
GLTA
Comment by Don — March 26, 2012 @ 2:58 pm
http://argex.ca/documents/ArgexPresentation_February2012.pdf
Comment by Don — March 26, 2012 @ 3:00 pm
Mike – thanks for the Moriarty link; it was an interesting and useful read.
Comment by Andrew — March 26, 2012 @ 5:29 pm
Don & Gil – thanks for the RGX input. It’s on my watchlist, seems to not want to retrace! I’ll see what happens with a couple of my holdings this week and hopefully be able to take a position on any pullback. Seems to be a better prospect than CEV?
Comment by Andrew — March 26, 2012 @ 5:31 pm