John, BMR’s technical guru, has so far been bang-on with his GBB analysis – his 42 cent initial price target has been achieved – and now he’s suggesting a move above 60 cents appears to be in the works.
“The chart and indicators predict that if the high volume continues next week we will see prices climb a lot higher once the resistance band has been overcome.”
GBB’s updated chart and John’s full analysis are below. Tomorrow morning we are issuing an important update on the geology of the LONG Bars Zone after a few days of examining the recently released Preliminary Block Model and reviewing historical information on Granada. Bottom line: Our estimate that Granada will become at least a 5 million ounce gold deposit is conservative, and we’ll explain why.
GBB's chart and indicators predict that if the high volume continues in the week ahead, we will see prices climb a lot higher once the resistance band has been overcome.
John: On Friday Gold Bullion traded a huge 8.4 million shares for a gain of 2 cents on the day and 5 cents on the week.
This type of trading pattern was to be expected as the news regarding the potential 2.4 to 2.6 million ounces in the LONG Bars Zone Preliminary Block Model was released at a time when the stock price was at the edge of a strong resistance band between 38 cents and 42 cents, the Fibonacci target level (two horizontal blue lines).
With continued high volume we should see a breakout above 42 cents early next week. The next Fibonacci target level is 62 cents.
The chart shows the stock is still trading within the upsloping channel (green lines), creating stronger trading level bases as it slowly moves up.
The RSI has an upsloping trendline, showing continued strength, without shooting high into the overbought region.
The Slow Stochastics shows the %K (black line) in the overbought area and is above the %D (red line) which is still climbing. This is bullish. Both the %K and %D lines can remain in the overbought area for a long time during an extended uptrend period. With the strength shown by the RSI and the trading pattern, we expect this situation to continue.
This is also supported by the ADX indicator which has the trend strength ADX (black line) high and still rising, above the +DI (green line) which is above the -DI (red line).
The chart and indicators predict that if the high volume continues next week we will see prices climb a lot higher once the resistance band has been overcome.
