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Gold is testing a support zone between $1,440 and $1.450 today…as of 7:05 am Pacific, bullion is down $25 an ounce at $1,445…Silver is off 54 cents at $23.50…Copper has slipped 3 pennies to $3.26…Crude Oil is down 28 cents at $95.88 while the U.S. Dollar Index has fallen one-quarter of a point to 82.14…

Gold imports by China from Hong Kong more than doubled to an all-time high in March as buyers in the biggest consumer after India boosted purchases, underscoring increased bullion demand in the world’s second-largest economy…mainland buyers purchased 223.52 metric tons, including scrap, compared with 97.1 metric tons in February, according to data from the Hong Kong government today…net imports by the mainland, after deducting flows from China into Hong Kong, were 130 metric tons compared with 60.9 metric tons a month earlier, according to Bloomberg calculations…the shipments preceded Gold’s record plunge month which led to a surge in demand for jewelry, coins and bars from India and the U.S to China…separate data today showed China’s Gold consumption rose 26% in the first quarter as prices fell…“This is quite out of expectation as all these imports were done before the market slump in April,”  Bloomberg quoted Qu Mingyu, a trader at Bank of China, one of the country’s three largest bullion banks…“Judging from the explosive growth of trading volume on the Shanghai Gold Exchange in the second half of April, and anecdotes that many jewelry shops are sold out throughout the country, imports might be even more substantial in April”…

Australia Cuts Rates To Record Low

The Reserve Bank of Australia has cut its benchmark cash rate to a record low, in a renewed attempt to boost activity outside of the resource sector and soften the impact of a strong domestic currency on trade-exposed industries…in a move that surprised economists, the RBA opted to reduce its cash rate by 25 basis points to 2.75%, highlighting the persistent strength of the Australian dollar over the past 18 months and subdued demand for credit as the reasons for its move…“The Board has previously noted that the inflation outlook would afford scope to ease further, should that be necessary to support demand”, RBA governor Glenn Stevens said in his post-meeting statement…

The Stupidity Of Governments

As investors, our biggest obstacle when it comes to trying to make money on our investments is government in general and the often ridiculous policies many jurisdictions implement, particularly in this era of resource nationalism and hyper-eco-activism…in Quebec, which used to be a shining example to the world in terms of how a government should structure resource development policy, the separatists and socialists now holding provincial power (thankfully the PQ only has a minority) are imposing minimum royalty payments and other higher taxes during one of the worst slumps the industry has ever witnessed…the PQ actually stated yesterday that it had to “scale down” its tax-hike plans – just imagine what will happen when commodity prices actually start taking off again if these idiots are still in power…the government estimates that the proposals announced yesterday would boost total mining taxes in 2015 by a relatively “modest” 15.6%…since when is a 15% tax increase modest?…and what other silly measures are they going to introduce as they pander to Quebec’s radical environmental movement?…exploration and resource development, while it will never die in Quebec, will begin to shift noticeably to Ontario if the Hudak Conservatives are able to gain power there, not unlike the situation in western Canada several years ago when the Alberta government (“Progressive” Conservatives) increased royalties for the oil and gas sector and neighboring Saskatchewan reaped all the benefits…capital is timid…as soon as it knows it’s not welcome in a particular jurisdiction, it quickly heads somewhere else where the welcome mat is out…

Crude Oil – Awareness Chart Update

It’s probably safe to say that a big move is coming in Crude Oil in the near future – the question is, will the move be up or down?…below is a 10-year monthly WTIC chart from John, an update to one he did recently…Crude has been trading in a 4-year symmetrical triangle and “decision time” is drawing near though it’s not necessarily imminent, as you can see from the apex…April trading tested support…now the price is close to resistance…the coming weeks and months will be interesting…global economic weakness – in particular, a continued slowdown in China – could knock Crude lower, while some unforeseen developments in the Middle East could be a trigger for a breakout to the upside…

Today’s Markets

A weak yen sent Tokyo stocks to their highest level in almost five years overnight…Japan’s benchmark Nikkei Index re-opened after a long weekend to surge past 14000 as currency moves and earnings drove momentum…the Index climbed a whopping 486 points or 3.6% to close at 14180…China’s Shanghai Composite was much more subdued, gaining just 4 points to close at 2236…European shares are modestly higher in late trading overseas…ECB chief Mario Draghi departed from a prepared speech in Rome late today to say that the central bank would watch data closely and is prepared, if necessary, to cut interest rates further, including the deposit rate which is currently at zero, on more signs of economic weakness…”We will watch all the incoming data on the euro-area economy in the next weeks and if necessary we’ll be ready to take further action,” he stated…the prospect of deposit rates in the euro area moving into negative territory pushed the euro lower today…the Dow is up 32 points through the first 30 minutes of trading to 15001…the TSX is 23 points higher at 12477 while the Venture is off a point at 966…Colorado Resources (CXO, TSX-V), after climbing 42 cents or 61% over 3 trading sessions, is off a nickel at $1.06…Victory Ventures (VVN, TSX-V) overcame important resistance at 9 cents yesterday, reaching an intra-day high of 13 cents on strong volume before closing up 2 pennies at 10.5 cents…it’s off a penny-and-a-half to 9 cents in early trading this morning…

Firesteel Resources (FTR, TSX-V)

Another company to keep an eye on in the Iskut River area is Firesteel Resources (FTR, TSX-V)…they hold a significant land position including a possible extension of Colorado’s potential North ROK deposit…the company hasn’t made any announcements since Colorado’s discovery, and they’ll need to raise some money to carry out any intended exploration, but one gets the sense they’re probably up to something based on the action in the stock since April 25…it would be foolish of them not to exploit the opportunity, and it appears they do have a good package of properties…technically, FTR is currently in a zone of strong resistance between 15 and 18 cents, so investors need to be aware of that…FTR may need to consolidate for a short period before possibly overcoming resistance…keep on a “Watch List”…

Prosper Gold (PGX.H) announced this morning that it has entered entered into a letter of intent with Firesteel to acquire an 80% interest in the Copper Creek property in northwest British Columbia…the proposed transaction would constitute Prosper’s qualifying transaction…keep an eye on Prosper…its President and CEO is Peter Bernier of Richfield Ventures‘ fame, and joining him is renowned geologist Dirk Tempelman-Kluit who was also instrumental in the Blackwater discovery and Richfield’s success…

Special Situation Update – Global Met Coal Corp. (GMZ, TSX-V)

Last week, we brought to the attention of our readers this little-known company trading between 4.5 cents and a nickel that has the potential to produce significantly more in revenue this year than its current market cap which is a paltry $2..3 million, brought down by the February-March-April weakness in the Venture…the sense of urgency with this situation has grown in recent days with the company announcing last Friday that it has arranged a $600,000 financing…this could be the last financing GMZ will have to complete for quite some time given the nature of the Black Creek met coal project in Alabama and how it should start filling the company’s coffers this summer…we don’t have to tell you how much of an advantage it is for a junior resource company in the current market environment to be able to generate consistent cash flow…what also excites us about Black Creek is the apparent simplicity of the operation – premium metallurgical coal (a vital ingredient in the steel making process) near-surface and within 20 miles of two of the largest coking facilities in the United States…Alabama is a resource-friendly state that mines nearly 20 million tons of coal annually and employs nearly 10,000 people in the industry…Global Met’s permit application with the state has successfully passed through several reviews and the final okay is expected shortly…the company has already stated that it expects to be in production within about a month after receiving the permit, which helps explain the current financing to ensure this process can flow smoothly…Chairman, CEO and President George Heard has successful previous experience in bringing situations like this into production – he has managed projects in the U.S., Canada, Mexico, Brazil, Africa and Indonesia, and he is intimately familiar with Alabama…he anticipates a predictable operating margin with Black Creek given a fixed selling price (they have a buyer lined up) while the actual mining will be contracted out at a fixed cost…GMZ closed a 4.5 cents yesterday, right at the rising 10-day moving average (SMA)…the recent breakout above resistance at 4 cents was encouraging, and the chart is starting to look a lot more favorable – consistent with the company’s prospects on the ground…as always, perform your own due diligence…we’ll have more on GMZ by early next week…

Covus Gold Inc. (KOR, TSX) Starts Drilling At North Bullfrog

Corvus Gold Inc. (KOR, TSX) has commenced a Phase 1, 20,000-metre drill program at its North Bullfrog Property in Nevada where it will try to expand the recently discovered Yellow Jacket high-grade zone…the weak Gold market has knocked Corvus down sharply from nearly $2 a share late last year…the stock closed yesterday at 63 cents, but it’s certainly one to keep on the “Watch List”…

Probe Mines Ltd. (PRB, TSX-V)

Another one for the “Watch List” is Probe Mines (PRB, TSX-V) which is currently building on a significant resource at its Borden Lake Project in northern Ontario…more drill results should be on the way shortly, as well, from an intriguing high-grade area that has excellent potential for expansion…

Discovery Ventures Inc. (DVN, TSX-V)

Discovery Ventures (DVN, TSX-V) has recently regained momentum after slipping as low as 14.5 cents in April…DVN closed at 23 cents yesterday, slightly above its 50-day moving average (SMA) which ntinues to decline but is beginning to flatten out…the “sweet spot” from an entry standpoint is just before that 50-day reverses to the upside which could be within the next month or so…below is a 2.5-year weekly chart from John…note the EMA(20) resistance at 24 cents and Fib. resistance at 27 cents…this is a critical zone for DVN to clear from a technical perspective…higher prices should follow if it’s able to clear that zone…

Note: John., Jon and Terry do not hold positions in FTR, KOR, PRB or DVN.  Jon holds share positions in VVN and GMZ.

Gold has traded between $1,465 and $1,480 so far today…as of 7:15 am Pacific, bullion is down $1 an ounce at $1,470…Silver is off 13 cents at $24.00…Copper is flat at $3.29 after a powerful move to the upside Friday…Crude Oil, after climbing more than $7 barrel the last two weeks to a 1-month high, has shed 35 cents to $95.26 while the U.S. Dollar Index is up one-tenth of a point to 82.19…

In yet another crackdown on Gold imports, the Reserve Bank of India has proposed a fresh set of measures to be mandated at the end of this month to curb imports and tighten criteria for banks lending against the yellow metal…the measures were unveiled Friday in the central bank’s monetary policy for 2013-2014…with the country termed the world’s largest net Gold importer, the outflow of dollars has weakened the value of the rupee…Gold and Crude Oil imports have also contributed to India’s large trade deficit…“The curbs will certainly bring down imports because Gold will not be freely available,” said Bachhraj Bamalwa, a director and former chairman of the All India Gems & Jewellery Trade Federation, in Bloomberg article…“The banks import Gold on consignment basis from a miner without investing anything and it remains the property of the miner until the bullion dealers take delivery…if they are not allowed to buy on consignment basis, imports will be restricted and chaos will prevail in the market”…India has tripled import taxes on Gold from as low as 2% in January last year after the current account shortfall, the broadest measure of trade, widened and the rupee slumped to a record low against the U.S. dollar…Finance Minister Palaniappan Chidambaram has blamed the deficit on a “passion” for Gold, saying the gap is a greater concern than the worst budget deficit among the so-called BRIC nations…the deficit widened to $32.6 billion in the last quarter of 2012…India’s Gold imports dropped 11% last year to 860 tons from a record 969 tons in 2011, the World Gold Council estimates…demand for jewelry and investment fell to 864.2 tons in 2012, the second straight year of decline, it said…

Gold’s immediate challenge is to overcome stiff resistance in the $1,480’s (specifically, the Fibonacci $1,484 retracement level as John’s recent charts have shown)…Gold has reacted twice at that level over the past 6 trading sessions…while the Gold price has stabilized recently due to a pick-up in physical buying, the big question is whether physical buyers have enough capital to support this market and replace the capital that’s fleeing “paper” Gold…even in bullion is able to slice through the $1,484 resistance, it’s going to have an even bigger challenge overcoming a band of resistance in the previous support zone between $1,500 and $1,550…the declining 50-day moving average (SMA) is at $1,537…

Services Sector Slows In China

Growth in China’s services sector slowed sharply in April to its lowest point since August, 2011, a private sector survey showed this morning in fresh evidence that the economic recovery in that country will remain modest and could be facing wider risks…the HSBC services Purchasing Managers’ Index (PMI) fell to 51.1 in April from 54.3 in March, with new order expansion the slowest in 20 months and staffing levels in the service sector decreasing for the first time since January, 2009…the HSBC services PMI follows a similar survey by China’s National Bureau of Statistics, which found non-manufacturing activity eased to 54.5…”The cooling of service sector activity in April likely reflected the knock-on effect of slower manufacturing growth, the impact of property tightening measures and the spreading bird flu”, according to HSBC’s China chief economist Qu Hongbin…

Updated Copper Chart

A stronger-than-expected U.S. jobs report, short covering and a large drawdown in LME warehouse stocks contributed to a big jump (6%) in the Copper price Friday, but the metal will have a tough time overcoming resistance against a backdrop of slower growth in China…below is a 2.5-year weekly chart from John…important support between $3 and $3.15 has held for now at least…after falling to $3 in the fall of 2011, Copper rallied 30% to $4…after falling to $3.24 in the late spring of last year, it rallied nearly 20% to $3.84…we’ll see what happens this time after Copper recently hit a low of $3.04…resistance levels are $3.35, $3.50 and $3.80…the primary trend in our view remains bearish for technical and fundamental reasons…

Updated Silver Charts

Nothing dramatic has changed from last week with regard to Silver which is trying to establish a base at $22 and move higher…RSI(2) and SS both continue to suggest that Silver does have some room to rally from current levels, but we would expect any upside move to be met with strong resistance at the $26 level which of course was previous support…below is a 3-year weekly chart…

Short-Term Silver Chart – 3-Year Weekly

Long-Term Silver Chart – 11-Year Monthly

The down trendline on this long-term chart really tells the picture, and the break below critical chart support and the Pitchfork tine last month was definitely a bearish development along with the -DI/+DI crossover…current oversold conditions (RSI-2 is at only 3.85%) could certainly moderate over the immediate and short-term, allowing for a test of resistance at $26, but we see a strong probability of a new low in Silver later this year (see the strong support line immediately below $20)…

Today’s Markets

Asian markets were higher overnight with China’s Shanghai Composite gaining 26 points to 2231…Hong Kong shares shot up to an 8-week high while Japan’s financial markets were closed due to a public holiday…they re-open tomorrow…European shares are mixed in late trading overseas…the euro zone’s business downturn dragged on in April, according to surveys released this morning, suggesting the region may be falling deeper into recession this quarter…the Purchasing Managers Indexes (PMIs) also showed that Germany is now suffering a contraction in business activity that has long been hampering France, Italy and Spain…the Dow is down 8 points at 14966 as of 7:15 am Pacific while the TSX has gained 44 points to 12482…the Venture is up 3 points to 968 as it hugs its still-declining 20-day moving average (SMA)…as John’s chart showed yesterday, 970 is important resistance the Venture must overcome this week in order to build on its recent momentum…

Victory Ventures (VVN, TSX-V) Chart

As we mentioned last week, while it was trading around 6 cents, Victory Ventures (VVN, TSX-V) is a tantalyzing speculation given its low share count (17.5 million currently O/S) and the fact it will soon be drilling in the heart of the Iskut district in northern B.C. where Colorado Resources (CXO, TSX-V) is working on a significant Copper-Gold discovery…this area is clearly heating up, and Victory’s drill program will test a chargeability anomaly increasing in strength with depth in what’s believed to be a southwest dipping syenite body…11 km to the southwest is Imperial Metals’ (III, TSX) Red Chris Mine which is expected to go into production next year…below is a 1.5-year VVN chart from John…this company has only been around for two years and the record volume last week is a very bullish sign…Friday’s 8-cent close gives VVN a market cap of only $1.4 million, leaving plenty of potential upside over the next few months…as always, perform your own due diligence…drilling success in the area will obviously be a key factor in determining how high this could go, but at current levels we do like the risk-reward ratio even in this challenging overall market environment…one clue to watch for in VVN – a close above resistance at 9 cents…through the first 45 minutes of trading this morning, VVN is up a penny-and-a-half at 9.5 cents on volume of nearly 300,000 shares…

Aldrin Resource Corp. (ALN, TSX-V)

An interesting mover Friday was Aldrin Resource Corp. (ALN, TSX-V) which resumed trading after being halted March 19 following a “fundamental acquisition” that required Venture receipt and review of documentation…Aldrin has acquired an option to earn a 70% interest in what appears to be a high-quality land package (the Triple M Uranium Property) totaling 12,000 hectares within 9 to 11 kilometres of the Fission Energy/Alpha Minerals Inc. Patterson Lake discovery…ALN climbed as high as 10.5 cents Friday and closed at 8.5 cents on total volume (all exchanges) of 3.2 million shares…this is one to watch closely over the next few months given the current technical posture of the stock (note the bullish +Di/-DI crossover in John’s 6-year monthly chart below) and the strength of the uranium story…ALN is unchanged at 8.5 cents in early trading today…

Note: John, Jon and Terry do not hold positions in ALN.  Jon holds a position in VVN.

TSX Venture Exchange and Gold

The Venture is finding support at its rising 10-day moving average (SMA) and was essentially unchanged last week, closing down half a point at 964.68.  Volume continues to be lackluster, though all is not dull as Colorado Resources‘ (CXO, TSX-V) significant Copper-Gold discovery in northern B.C. is generating interest, not only of course in CXO but in some other surrounding players.  The key for the Venture this coming week will be to maintain support at the 10-day SMA (currently 959) and hopefully generate fresh momentum with a push above the 20-day SMA (currently 976) for the first time since January.

Below is a 1-year weekly CDNX chart from John.  The break below neckline support at 1165 was a critical breach, and the initial result was a fall of more than 200 points over the ensuing couple of months.  There’s not enough evidence at the moment to suggest that we’ve seen the bottom in this market.  As long as Gold is still vulnerable in the coming months to further declines, which it is (at the minimum we expect a re-test of the April low), then the Venture could still hit new 4-year lows.  However, for the time being at least, a rally from the April 17 low of 918 continues and potentially could gather momentum in the coming days and weeks.  Below is a 1-year weekly chart from John.  The 970 area is resistance and a close above this level during the week ahead would be very encouraging – watch for it.  Keep in mind that a rally of 100 points or so from where the Index is now would result in some outstanding gains in a select number of stocks.  So the potential of a strong short-term trading opportunity certainly exists.

INK Research reported last week that insider buying on the Venture is nearing record highs, led by the mining sector.  The company’s proprietary insider buying indicator hit 715%, meaning there are seven stocks with insider buying for each stock with insider selling.  This marks a steep increase since early March, when the indicator was near 400%.  Such a high level of buying interest among officers and directors within their own businesses in the resource sector has correctly foreshadowed a recovery in share prices in the past.

Gold

Gold encountered resistance again last week at the Fibonacci $1,484 level, the first critical technical hurdle it must overcome in order to take on a more bullish posture.  There is major resistance from the $1,480’s through to $1,550, while strong support is evident around $1,450.  Physical buying has helped to stabilize the Gold market recently but what and who are the catalysts that could drive Gold beyond $1,550 again in the near future?  That’s the big question.  And there’s a lot of heavy lifting to do.  Below is an updated 6-month daily chart from John.  We see a greater probability of an eventual re-test of the low $1,300’s than a breakout above $1,550 given current technical conditions.  Keep in mind that the declining 50-day SMA (currently $1,537) has been providing stiff resistance since late last year.

Gold closed up $8 an ounce last week to finish at $1,471.  Silver added 9 cents to close at $24.13.  Copper had a huge day Friday, surging 6% thanks to the U.S. jobs report, short covering, and a large drawdown in LME warehouse stocks.  Copper was up 12 cents for the week at $3.29.  Crude Oil enjoyed another powerful week, climbing $2.61 a barrel to $95.61, while the U.S. Dollar Index fell one-third of a point to 82.10.

Arizona Governor Jan Brewer vetoed a measure last Thursday that would have made Gold and Silver legal tender in the state, saying the legislation could have resulted in lost tax revenue.  The Republican-controlled state legislature voted through the measure last month in a response to what backers said was a lack of confidence in the international monetary system.  The bill called for Arizona to make Gold and Silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government.  “While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation,” Brewer, a Republican, said in an open letter to state Senate President Andy Biggs.  The push to establish Gold as currency in the United States has become increasingly popular, with more than 10 states currently drafting similar legislation.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, the long-term bull market in Gold has been driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, has had a huge impact on bullion.  Despite its current weakness, the fundamental long-term case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates, a Fed balance sheet now in excess of $3 trillion and expanding at $85 billion a month, money supply growth around the globe, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, emerging market growth, geopolitical unrest and conflicts…the list goes on.  However, deflation is prevailing over inflation in the world economy and this had a lot to do with Gold’s recent plunge below the technically and psychologically important $1,500 level. Where and when Gold bottoms out in this cyclical correction is anyone’s guess, but we do expect new all-time highs later in the decade.  There are many reasons to believe that Gold’s long-term bull market is still intact despite a major correction from the 2011 all-time high of just above $1,900 an ounce.

Welcome to our site, or at least the initial version of it!  BMR has been online for more than three years and strictly through word-of-mouth we have built a loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.  While we focus a great deal on the Gold and Silver markets and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on undiscovered junior exploration companies or small producers, mostly in the Gold and Silver exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. Always perform your own due diligence and please read our disclaimer at the bottom.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perspective (His money that we have been given stewardship of), He will bless you.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

BullMarketRun.com (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

For the second time in a week, Gold has reacted at the Fibonacci $1,484 resistance level…bullion traded as high as $1,489 overnight but has since given up those gains as it went into reverse following release of the U.S. April jobs report which was slightly better than expected…as of 7:00 am Pacific, Gold is unchanged at $1,467 after dipping as low as $1,455…Silver has backed off as well but is still positive for the day, up 17 cents at $24.00…Copper has made a big move today, gaining 16 cents to $3.26 thanks in large part to a sharp decline (the second-biggest in 4 years) in LME inventories…Crude Oil is up $1.00 to $94.99 while the U.S. Dollar Index has fallen nearly one-tenth of a point to 82.14…

If and when Gold is able to conquer the $1,484 level on a closing basis, then a near-term challenge of the 50-day moving average (SMA) around $1,540 becomes the next major “test” area…a move above $1,500 on a closing basis would also give a psychological lift to investors and act as a shot in the arm for Gold stocks…as we’ve seen again today, though, there is major resistance immediately underneath $1,500…this is a volatile market, a war between bears and bulls, with a lot of games being played…20 analysts surveyed by Bloomberg expect bullion to drop next week, with nine bullish and four neutral, the biggest proportion of bears since February, 2010…data compiled by Bloomberg also show that investors sold 174 metric tons through ETP’s last month, and $17.9 billion of value was wiped out…“The fundamental picture, for now, has changed”,  said Ole Hansen, the head of commodity strategy at Saxo Bank A/S in Copenhagen, in a story carried by Bloomberg…“The investment community or those trading paper Gold in futures and ETP’s are still heading for the exit”…Arizona Governor Jan Brewer vetoed a measure yesterday that would have made Gold and Silver legal tender in the state, saying the legislation could have resulted in lost tax revenue…the Republican-controlled state legislature voted through the measure last month in a response to what backers said was a lack of confidence in the international monetary system…the bill called for Arizona to make Gold and Silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government…

The Case For Victory Ventures Inc. (VVN, TSX-V)

Yesterday, we described Victory Ventures (VVN, TSX-V) as a “tanalyzing speculation” given its current low market capitalization ($1.1 million) and the fact it’s getting ready to commence a drill program in the immediate vicinity of Colorado Resources‘ (CXO, TSX-V) Copper-Gold discovery in northern British Columbia…this is not a case of a company with some “cow pasture” near a discovery that it’s trying to promote…in fact, in early February, nearly 3 months before Colorado’s announcement that it had drilled 333 metres grading 0.51% Cu and 0.67 g/t Au in its first hole at North ROK, Victory had secured the drill permits for its highly prospective Copau Property and announced its intention to commence a drill program by the middle of the year…a ground magnetic survey located a pronounced northwest-southeast linear-trending anomaly throughout much of the Copau claim area, and this encouraging information was then backed up by an IP survey that located a strong chargeability response underlying the southwestern portion of the property…the chargeability anomaly occurs from depths of approximately 200 metres with increasing response to 450 metres (similar to patterns at North ROK), which was the maximum reading depth of the IP…the present known extent of the anomaly varies between approximately 300 and 400 metres wide (east-west) and over 1,200 metres long (north-south), appearing open to both the west and south and at depth…Copau is situated within the prolific “Golden Triangle”…just 11.5 km to the south is Imperial Metals’ (III, TSX) Red Chris Mine which is expected to go into production next year…just 4 km to the north of Copau is Colorado’s North ROK Property…meanwhile, Colorado is also currently drilling the Eldorado Property which is just a couple of kilometres from Copau…so there’s plenty of activity in the area…more good results from Colorado (from either North ROK or Eldorado), and speculation regarding drilling at Copau, could give investors a real victory with VVN…and if there’s a hit at Copau, look out…with just 20 million shares outstanding, and a 6.5-cent stock price, the potential leverage investors have with VVN is truly huge…yes, this is risky exploration and there’s never a “sure thing” in the market…only invest money that you can afford to lose…but the geological case for this particular region of British Columbia is very powerful…unfortunately, due to the horrible market conditions in the junior resource sector this year, many investors are simply not paying attention right now, and that’s a mistake…it’s often in conditions like this that the greatest opportunities present themselves…there are no guarantees, but we see a great opportunity for a BIG victory in VVN…

U.S. Economy Creates 165,000 Jobs In April, March Numbers Revised Sharply Upward

The U.S. April jobs report came in slightly better than expected as the economy created 165,000 jobs and the unemployment rate fell from 7.6 to 7.5%…the March jobs number, meanwhile, was revised sharply higher from 88,000 to 133,000…February payrolls were also revised higher from a gain of 268,000 jobs to 332,000 jobs…there’s no question the U.S. economy is suffering some pain at the moment from tax increases and some across-the-board spending cuts that began at the beginning of March, but some analysts say that fears about a major spring slowdown have been overblown…
equity markets are reacting positively this morning…

Today’s Markets

Asian markets were mixed overnight with Japan’s Nikkei average losing 105 points to finish the week at 13694, while China’s Shanghai Composite gained 31 points to close at 2205…European shares are moving higher in late trading overseas, thanks to the U.S. jobs report..meanwhile, 3 of the euro zone’s five largest economies (France, Spain, and the Netherlands) will fall short of EU-mandated deficit limits this year as the bloc’s recession continues to deepen, according to highly anticipated European Commission forecasts published this morning…in North America, the S&P 500 has crossed 1600 for the first time while the Dow has also hit a new all-time high, trading just beneath 15,000 through the first 30 minutes of trading…the TSX is up 106 points while the Venture has gained 4 points to 967…Colorado Resources (CXO, TSX-V) is up another 7 cents to 96 cents while Victory Ventures (VVN, TSX-V) has gained a penny to 7.5 cents on a fresh surge in volume…

John’s chart below shows the TSX in comparison with the S&P 500, the Canadian dollar and the CRB Index over the last 9 months…the TSX strongly under-performed against the S&P 500 from the beginning of March through mid-April, but has been keeping pace since…

HXD Chart Update

The HXD (the Horizons S&P/TSX 60 Bear Plus ETF) came within just 15 cents of John’s Fibonacci target ($9) recently and is pulling back toward strong support at the $8 level, which would equate to about 12550 on the TSX where the declining 50-day moving average (SMA) currently is…the 100-day SMA is just slightly above the 50-day, so that’s where significant resistance can be expected on the TSX…below is a 6-month chart for the HXD…

Discovery Ventures (DVN, TSX-V) Updated Chart

Discovery Ventures (DVN, TSX-V) appears to be back on track after falling as low as 14.5 cents during April’s market sell-off…the company continues to work toward bringing its Willa deposit in the West Kootenays into production…important information to take note of is the company’s announcement April 23 when it stated, “(Discovery Ventures) has initiated several technical and corporate due diligence efforts on assets held by Roca Mines, including its wholly owned subsidiary FortyTwo Metals Inc., the owner of the Max molybdenum mine…Max is a 500-tonne-per-day operation (currently on care and maintenance) located 125 kilometres away from the company’s Willa deposit that could serve as a potential site for the processing of mineralized material extracted from the Willa property”…Discovery had slightly more than $2 million in cash as of the end of December, according to its latest financial report…

Note: Jon holds a share position in Victory Ventures (VVN, TSX-V)

Gold has traded between $1,451 and $1,475 so far today…as of 7:40 am Pacific, bullion is up $12 an ounce at $1,470…Silver is 29 cents higher at $23.94…Copper is up a nickel to $3.12…Crude Oil is 77 cents higher at $91.80 while the U.S. Dollar Index has gained more than half a point to 82.18…

Gold showed strong support between $1,440 and $1,450 yesterday, recovering from intra-day losses of more than $30 an ounce to close above $1,450…SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, said its holdings fell 0.31% to 1,075.23 tonnes yesterday, the lowest since September, 2009…reports are that physical market activity seems to have slowed after a recent surge in the purchase of Gold bars, coins and nuggets across Asia sent premiums for Gold bars to multi-year highs…the Chinese market opened up again overnight, after a three-day holiday in that country, but there was little evidence of Gold buying despite slightly lower prices today than at the end of last week…for now, Gold is range-bound between $1,440 and the Fibonacci $1,484 level – investors should be closely watching for a move above or below those support and resistance areas this month…the median of 38 estimates compiled by Bloomberg has Gold finishing the year at $1,550 an ounce, 7.5% less than at the end of last year and the biggest drop since 1997…diminishing trust in the metal’s ability to preserve value has spurred a majority of analysts to predict the first annual retreat since 2000…

Updated Gold Chart

As mentioned above, Gold faces stiff resistance at the Fib. 61.8% level ($1,484) which it must overcome in order to gather the bullish energy required to lift it into the next major resistance zone which is between $1,500 and $1,550…below is an updated 6-month daily chart from John…RSI(14) is currently flat at 43% while the 50-day moving average (SMA) has fallen to $1,542…

New Gold Inc. (NGD, TSX) Reports First Quarter Results

New Gold Inc. (NGD, TSX) continues to show why it’s one of the best-run producers in the market as the company is keeping costs under control while increasing production…NGD reported Q1 net earnings of 8 cents per share yesterday vs. 7 cents per share in the same period last year…revenue increased from $168.8 million to $202 million…Randall Oliphant, Executive Chairman, stated, “Consistent with our plans, the operations are expected to have progressively stronger quarters as we move through 2013″…New Gold also reported a 300% increase in measured and indicated Gold and Copper resources at New Afton and a 30% increase in inferred resources there…the company also stated it will be providing additional updates on the results of its 2013 regional exploration program on the multiple previously identified targets across its 1,000-square-kilometre Blackwater land package…the stock is down, however, in early trading today as the TSX Gold Index is lower despite the higher Gold price…

ECB Cuts Main Interest Rate

The European Central Bank cut its main interest rate to a new low today in an attempt to drag the euro zone out of the longest recession in its history…as was widely expected, the ECB’s governing council voted to cut the main refinancing rate by a quarter of a percentage point to 0.50%…the rate, which determines the cost of more than 850 billion euros in ECB loans outstanding, had stood at 0.75% for the last 10 months…since July, the ECB had concentrated more on “non-standard” measures of monetary policy to support the economy, most of all through the creation of its new program for buying government bonds, known as Outright Monetary Transactions (OMT) which has helped with borrowing costs for the governments of countries such as Spain and Italy…their borrowing costs are now close to 30-month lows, but this improvement has failed to feed through to the real economy…

Fed Signals It Could Ramp Up Bond Buying

As we speculated Monday, it’s very possible we could see the Fed intensify its current QE program before it begins to scale it back due to stubbornly high unemployment in the U.S. and weaker than expected inflation…in a new line added to its regular statement, the rate-setting FMOC said it could move the rate of asset purchases up as well as down depending on what happens to prices and jobs…the committee had previously hinted that it might reduce its monthly purchases…clearly, they are concerned about a slowdown in the economy and job growth while deflation is a bigger threat than inflation at the moment…

CDNX-U.S. Dollar Index Comparative Chart

Below is a 5-year weekly Venture chart that includes a comparison with the U.S. Dollar Index…the two have a high inverse relationship…the strengthening of the dollar in February, which we showed in a chart yesterday, was a bad sign for the Venture and indeed it broke important support that month below 1154 and tumbled an additional 200+ points into April…what this chart shows is that the dollar (despite today’s jump) is now in a bearish trend, while the CDNX relative to the dollar is gaining strength – a positive sign for the Venture…note the very strong down trendline resistance for the Venture – once it’s able to break above that down trendline, a major new bullish phase will be underway…of course timing of that is uncertain…

Today’s Markets

Japan’s Nikkei average fell 105 points overnight to close at 13694…trading resumed in China and the Shanghai Composite slipped 4 points to 2174…European shares are mixed following the ECB rate cut and a Mario Draghi news conference during which he stated the ECB was ready to act if needed but didn’t announce any further stimulus or asset purchases…the Dow is up 70 points through the first 70 minutes of trading while the TSX is down 1 point…the Venture is flat at 962…Colorado Resources (CXO, TSX-V) has held the support John showed yesterday and is currently up a dime at 79 cents…keep in mind that Colorado is also currently drilling the Eldorado Property, which it can earn a 75% interest in…that property is also adjacent to Victory Ventures‘ (VVN, TSX-V) Copau Property which will be drilled in the coming weeks…Victory’s market cap is just over $1 million which makes it a very tantalizing speculation given events in northern British Columbia…VVN is up a penny at 6.5 cents…

Individual Charts – Energold Drilling Corp. (EGD, TSX-V); Tinka Resources (TK, TSX-V); Amarc Resources (AHR, TSX-V)

Three quality situations that are worthy to follow closely are Energold Drilling (EGD, TSX-V), Tinka Resources (TK, TSX-V) and Amarc Resources (AHR, TSX-V)…each has positives, in terms of fundamentals, but Energold and Amarc have seen their share prices drop steadily since early 2012 while Tinka just recently slipped after hitting an all-time high in February…those prices could still drop a little more, of course, but these companies will certainly survive the current storm and flourish again later…as always, perform your own due diligence…

Energold Drilling (EGD, TSX-V)

Tinka Resources (TK, TSX-V)

Amarc Resources (AHR, TSX-V)

Note: John, Jon and Terry do not hold positions in EGD, TK or AHR.  Jon holds share positions in CXO and VVN.

“Gold Company Costs Could Hit $2,000 Within 10 Years”

Excellent article at www.mineweb.com this morning by Geoff Candy:

For the past five years or so, gold company costs have been rising at around 17% per year. And, while they have moderated somewhat of late and could go lower in the short term, the long term trend is definitely up.

This is according to Earth Resource Group, investment advisor, Georges Lequime, who told Mineweb’s Gold Weekly podcast that much of this increase has been driven by falling grades, with the average across the industry now below 1 gram per tonne.

Lequime explained that the fund has been tracking cost numbers since 2008, “We take the top 13 producers and we add in the project capital (because there’s always a fine line between sustaining capital and project capital because a number of these projects really are replacing current production) and we have the number at just over $1400 an ounce currently.”

But, he said, “We are starting to see from the big four, a slight increase in the grades. So there’s a certain degree of higher grading taking place by a couple of the larger companies which is giving some relief to that total cash cost number.”

He added that he has been told by the companies concerned that there has also been some easing on the labour cost inflation front, which has been running out of control over the past four or five years. And, there has also been a pull back recently in fuel prices and some companies delaying projects because of cost.

There is also, he says, “a connection between the gold price and the costs and its quite clear that as the gold price goes higher, there’s a reluctance from miners to leave ore underground that you can still make some money on on the margin, but obviously it’s much lower grade, you will go and take it through to the mill which is obviously going to push up your average costs, although you’re making some money on it. You’re just keeping a very thin margin.”

As a result of this and the other factors mentioned, he says, if current cost trends continue, the industry could well see $2,000/oz within 10 years.

The flip side of this, he says, is that the group is becoming increasingly bullish on the medium, to long term outlook for bullion prices.

Not only are projects being delayed, he says, but exploration spend has been cut 35% across the industry from this year to last, which makes the chances of finding big, new deposits even smaller.

This means, he says, “We’re probably going to get a fall in global production quicker than what we had anticipated, and that should put some pressure on the gold price.”

In terms of performance, however, he says, while gold companies have, in the main, disappointed investors, many are beginning to get the message, “they’re saying, we have to give something back to our shareholders otherwise we’re not going to be able to fund these new projects, we’re not going to be able to fund our exploration. I’m not hugely optimistic that we’re going to get a significant expansion in margins, but I don’t think we’re going to go through as poor a period as we have in the past 10 years,” he says.

Asked, what he is looking at in order to find value in the sector, Lequime said, management is more important than ever in the current market.

“One has to have a look at is who’s got the best ability to actually add value over the next two or three years, what does the exploration upside look like, who is going to control their costs the best and who’s actually going to deliver against the plan that they’ve promised.”

The companies that can do that, he says, are going to stand out from the crows and do well, “Unfortunately there are probably fewer of those companies around than I’ve seen in the last 20 years of looking at this market.”

Gold has traded between $1,446 and $1,477 so far today, in advance of the FMOC decision…as of 7:20 am Pacific, bullion is off $26 an ounce at $1,451…Silver has retreated 88 cents to $23.47…Copper is down a dime to $3.08…Crude Oil is down $2.46 a barrel to $91.00 while the U.S. Dollar Index is off its lows but still down over one-tenth of a point to 81.57…

U.S. Mint figures show American Eagle Gold coin sales hit a three-year high of 209,500 ounces in April, the highest since sales of 231,500 coins in December, 2009…these figures include 187,500 1-ounce American Eagle bullion coins, a massive increase over the 20,000 that were sold in April of last year…year-to-date total Gold coin sales stand at 502,000 ounces as of yesterday…American Eagle 1-ounce bullion coins sales, the most popular for investors, now stand at 434,000 ounces…meanwhile American Eagle Silver bullion coins sales for the month of April shot up nearly 169% over last year from 1,520,000 Silver ounces in April, 2012, to 4,087,00 ounces…“Year-to-date sales of 18,310,000 have never been achieved so soon in a year”, Coin News observed yesterday…“Last year sales did not top 18.3 million until July 16″…

The selling in Gold-exchange-traded funds is showing signs of slowing, according to UBS:  “Gold has found some respite from ETF selling this week, as tentative signs of tapering emerged for the first time in two weeks”, the bank stated this morning…”ETF investors sold 84k oz yesterday versus an average outflow of about 350k oz over the previous 10 trading days…some alleviation of pressure from the ETF camp is a welcome development for Gold, and would further ease investor concerns…with QE (quantitative easing) fears being one of the key motivations behind the aggressive ETF selling this year, hints that potential tapering of QE would now be pushed back should see improvements in the ETF space”…

Disappointing ADP Jobs Report

Employment growth is still a major challenge in the U.S., and no doubt that will be weighing on the minds of Federal Reserve officials today…ADP reported this morning that private companies created just 119,000 new positions in April, well below expectations of 150,000…it’s also confirmation that the labor market is slowing entering the late spring and early summer…”Nearly every industry has seen slower growth since the beginning of the year”, Moody’s economist Mark Zandi told CNBC this morning…”Smaller businesses are experiencing much weaker growth”…Moody’;s Analytics conducts the survey in conjunction with ADP…on Friday, the Labor Department releases the non-farm payrolls report for April…meanwhile, other U.S. economic data was released this morning – manufacturing activity slowed slightly in April while March construction spending declined…

China Manufacturing Weakens

A gauge of China’s manufacturing activity showed fresh signs of weakness in April, undercutting hopes of a stronger rebound in demand from the world’s second-largest economy…the official Purchasing Managers’ Index came in at 50.6 in April, below expectations of a reading in line with the 50.9 recorded in March…the upturn in momentum that began in China during the fourth quarter, after weaker growth for much of last year, is still fragile as the country grapples with a sluggish global economy and less-than-robust demand at home…

Record Insider Buying In Junior Mining Stocks

Interesting article by Darcy Keith in this morning’s Globe and Mail…insider buying on the Venture Exchange is near a record high…INK Research’s Venture indicator is at 715% today, just 20 percentage points below its record peak of 735% set on October 27, 2008…that means there are more than seven stocks listed on the exchange with insider buying for every one seeing selling…it also marks a steep increase since early March, when the indicator was near 400%…as Keith noted, such a high level of buying interest among officers and directors within their own businesses in the resource sector has correctly foreshadowed a recovery in share prices in the past…

Global Met Coal Corp. (GMZ, TSX-V)

One of the advantages of the very weak market we’ve seen recently is that some companies’ share prices have been unnecessarily beaten down, creating some unique opportunities for common sense investors…the trick, of course, is to be able to separate the wheat from the chaff…one situation at the moment that we find particularly appealing is Global Met Coal (GMZ, TSX-V) because it is very close to generating cash flow as it awaits the final permit for its Black Creek Coal Property in Alabama, a resource-friendly state that mines 20 million tons of coal annually and employs nearly 10,000 people in the industry…what Global Met is blessed with is premium quality met coal that it says can be easily and cheaply mined from surface at Black Creek which is just 20 miles from two of the largest coking facilities in the United States…Global Met’s permit application with the state of Alabama has successfully passed through several reviews and the final okay is expected imminently (anytime this month), which may help explain why the stock came to life yesterday and overcame resistance at 4 cents – yes, it’s amazing GMZ has drifted this low but in markets like this, common sense often gets thrown out the window…it appears Global Met already has a buyer (or buyers) lined up for its product as it has stated that coal can be uncovered and sold within 1 month of receiving the permit…they expect to be able to start at 10,000 tons a month and gradually ramp up production to as much as 30,000 tons a month…this would be a contracted out, turnkey operation which at 10,000 tons per month would generate monthly revenue of approximately $1.5 million…at a nickel, Global Met’s market cap is just $2.5 million…what we also like about this situation is that Chairman, CEO and President George Heard has successful previous experience in bringing situations like this into production – he has managed projects in the U.S., Canada, Mexico, Brazil, Africa and Indonesia…there are always risks in mining but Black Creek has a certain simplicity to it, and to find a company with a $2.5 million market cap that’s on the verge of generating that much in revenue over just two months is rare…as always, perform your own due diligence…

Yamana Gold Inc. (YRI, TSX) Reports Q1 Net Earnings

Yamana Gold Inc. (YRI, TSX) has reported a 4% increase in production during the first quarter over the same period last year, but a 39% decline in profits as Q1 net earnings came in at 14 cents per share ($102.1 million) vs. 23 cents per share in Q1 2012…Q1 revenue was $535 million…according to Thomson Reuters, analysts were expecting Q1 earnings of 18 cents per share on total revenue of $565 million…the company aims to sharply reduce its all-in sustaining costs this year ($856 for the first quarter) as the growing Canadian Gold producer adjusts to a recent drop in bullion prices, CEO Peter Marrone said yesterday…”As we’ve seen the metal prices come down, we’re going to reclaim some of that lost margin”, Marrone told Reuters…”We anticipate that we should be able to get at least an improvement of $100 per ounce by mid-year and trending toward $150 per ounce by the end of the year”…Yamana plans to cut sustaining capital, reduce head count, revamp how it manages inventories, and improve its equipment maintenance cycle…New Gold Inc. (NGD, TSX) reports its Q1 earnings after the market close today…

U.S. Dollar Index Chart Update

The U.S. Dollar Index continues to show weakness and the trend is clearly bearish…what this means at the moment is hard to say, but what we do know is that a rising U.S. Dollar is generally not a good omen for the Venture Exchange…the latest example of this was the run to the upside in the dollar that began at the beginning of February when the Venture broke below important support…below is a 6-month daily U.S. Dollar Index chart from John…

Today’s Equity Markets

Japan’s Nikkei average slipped 62 points overnight to 13799 on the weaker-than-expected Chinese PMI data…China’s Shanghai Composite, meanwhile, re-opens tomorrow after the 3-day Golden Week holiday…the Index closed last Friday at 2178…while there are some positive indications in this chart from John, including a supporting 200-day moving average (SMA) at 2175, the downsloping channel since February is a concern…we’d feel better about the outlook for commodities and global growth if the Shanghai were able to surge higher and move decisively above the channel resistance…

European markets are mixed in late trading overseas…in North America, the Dow is down 75 points at 14765  as of 7:30 am Pacific…the TSX has slipped 101 points through the first hour of trading while the Venture Exchange is down 6 at 960…

Colorado Resources (CXO, TSX-V)

Technical analysis is challenging for a very fluid, fast-moving discovery play, subject to potentially volatile price swings based on drill results, but it does serve as a useful guide in determining support and resistance areas we should be watching closely…such is the case with Colorado Resources (CXO, TSX-V) which reported a stellar first hole (Cu, Au) last week at its North ROK Property north of Stewart…this is certainly a discovery of significance, though it’s still very early in the game…below is a 2.5-year weekly chart from John that shows RSI(14) at 87, clearly in overbought territory…this doesn’t mean it can’t become more overbought…CXO reported a great hole and more drilling is being lined up…the company is also flush with cash ($8 million) and in no need of doing a financing at the moment to advance this project…at 75 cents, the market cap is $29 million, leaving plenty of room for a higher valuation if additional drilling is successful…this area should garner more interest in the coming weeks and at least two companies to keep an eye on in this regard are Victory Ventures Inc. (VVN, TSX-V) and Firesteel Resources (FTR, TSX-V)…as always, perform your own due diligence – these of course are highly speculative opportunities, including CXO…technically at the moment, CXO has strong support between 56 and 68 cents with resistance between 80 and 90 cents…

Focus Graphite Inc. (FMS, TSX-V) Chart Update

Note: John Terry do not hold share positions in FMS, GMZ, CXO, VVN or FTR.   Jon holds share positions in GMZ, CXO and VVN.