Gold dropped as low as $1,585 overnight, climbed back above the $1,600 level and then eased off again slightly…as of 7:10 am Pacific, the yellow metal is down just $1 an ounce at $1,598…Silver is off 59 cents at $29.15…Copper has shed 2 pennies to $3.30…Crude Oil is 68 cents higher at $94.21 while the U.S. Dollar Index is flat at 80.22…
Markets in New York and Toronto are generally flat while the CDNX is trading down a point at 1425…
Last week’s big tumble in Gold took the CDNX below important support at 1500 but the TSX Gold Index, despite falling 8% for the week, did not suffer the same degree of chart damage…in fact, the Gold Index so far remains within an upsloping channel that has been in place since early 2009…what this suggests is that the producers are likely to continue to outperform the juniors…the Gold Index needs to be watched carefully, however, as a breakdown below the channel would be a bearish development…it’s currently off 3 points at 367…there is strong support in the mid-360’s, an area that is being tested for the fourth time since early August…
The 10-year Kinross (K. TSX) chart is also interesting…the stock is at long-term support with Slow Stochastics also at support and RSI at a 10-year low…this chart shows Kinross was clearly a smart “sell” in mid-2008 but gives potential buyers a lot of encouragement right now…this chart throws some cold water on the Gold doomsayers at the moment…
One of our readers brought up Armistice Resources (AZ, TSX-V) in the comments section over the weekend and indeed it does have an interesting chart as John points out below…Armistice, which closed Friday at 21 cents, is developing its McGarry Project in Virginiatown, Ontario, immediately adjacent to the former Kerr Addison Mine which produced over 11 million ounces of Gold…
Cap-Ex Ventures Ltd. (CEV, TSX-V) has entered into a management services agreement with Forbes & Manhattan, Inc., which will bring a new President and CEO into CEV…Francois Laurin, who was the Chief Financial Officer of Consolidated Thompson Iron Mines Ltd. (acquired by Cliffs Natural Resources earlier this year for $4.9 billion), will take over the reigns of Cap-Ex later this week upon completion of the first tranche of CEV’s recently announced $10.2 million financing, most of which has been subscribed by Forbes & Manhattan…CEV is currently off a penny at 87 cents…the news this morning is another positive development for Cap-Ex which has made a significant iron ore discovery in the Labrador Trough…
Canada Rare Earths (CJC, TSX-V) continues to look solid and is up 4 pennies in early trading at 59 cents…
How about that LCC.V! Holy catfish! I would like to buy if ever a pullback comes!!
Comment by george — December 19, 2011 @ 8:14 am
Also, is that considered a bull flag forming on cjc?
Comment by george — December 19, 2011 @ 8:15 am
George
Yes.
A Bull Flag is a downsloping flag during an uptrend as shown on my last CJC Chart.
Comment by John - BMR — December 19, 2011 @ 8:23 am
Rainbow Resources is do fantastic today…. DOWN!! I suppose a chart is in order..LOL How about a chart on CUI?? I see the “support” that BMR was calling at .08 is now BROKEN INDEFINITELY!!! What’s next for CUI?? Down back to .015-.02, than a 10 for 1 reverse split???? And, stay AWAY from T.AZ, BMR!! I own many MANY shares in it, I bought at .16, and I don’t need ANY of your BAD KARMA ruining my stocks!!! Now, Lets see, SD< VGD< GDZ< GBB< SFF< ABI< and ofcourse…CUI!!
Comment by John — December 19, 2011 @ 9:29 am
Johnny
I take exception to anyone bashing my RBM. Anyway, it looks as if i may have
made a mistake, instead, i should have bought VGN, why ??????? because our
buddy Johnny recommended it. But Johnny is no good at recommending stocks,
he is for anyone shorting. Give it up Johnny, you are wearing out your
welcome. Merry Xmas !
Comment by Bert — December 19, 2011 @ 10:09 am
Thanks for the updated T.AZ chart BMR team. I am hoping for some confirmation of this run today and this week. Merry Christmas to you all! and God bless us……everyone:)
Comment by Ed — December 19, 2011 @ 10:47 am
CEV and CJC both looking strong. Staylong, the new year is around the corner and what a year it will be for these 2 companies. Short term CJC will most likely pass CEV share price. But they are both going to make the shareholders money. CJC possibly a lot by Feb.
I have been very busy with Christmas and on the front with both companies and will continue to give you updates as I get them. Cheers
Comment by dave — December 19, 2011 @ 9:14 pm
A couple of trading days ago, after viewing the 14,3 slo. stochastic,
i suggested that Santa may be coming to the Venture. Welcome Santa,
do you have any gifts for Johnny ? Move over John, i’m coming up.
Comment by Bert — December 20, 2011 @ 6:48 am
Johnny has been a bad boy this year (LOL). Not sure he’s on Santa’s list this time around, Bert. You’re right about the oversold conditions. I like how CEV is looking at the moment, technically and fundamentally. Forbes and Manhattan is essentially taking over and that has to be viewed as a positive.
Comment by Jon - BMR — December 20, 2011 @ 6:55 am
AZ – I think the biggest hurdle will be Joe Dwek (Mineralfields), it will be interesting to watch because it certainly looks as if it’s set for a run. Good luck 🙂
Comment by Andrew — December 20, 2011 @ 7:23 am