It was a strong week for Gold Bullion Development (GBB, TSX-V) which continues to climb, hitting a new all-time high of 52 cents this week. Below is an updated GBB chart along with comments from BMR’s technical analyst:
John: Gold Bullion Development continues to reach new highs and consolidate in an orderly manner without enormous spikes and precipitous drops that are prevalent among the more speculative securities. This trading behavior says a lot for the strength of the fundamentals and the respect the company is receiving from the financial, investing and trading communities. The beauty is that its climb to fame has hardly started. There appears to be much, much more to come.
Looking at the chart we see this orderly climb is shown within the upsloping channel (blue lines).
The average daily volume is gradually declining and with the price climbing we should see a breakout from this channel when or if favorable exploration news is released. The price and volume chart demonstrates strength.
Looking at the indicators:
The RSI is climbing, showing increasing strength – this is bullish.
The ADX trend indicator shows the trend strength ADX (black line) is climbing, confirming the existing trend is getting stronger. This trend is bullish because the +DI (green line) is above the -DI (red line).
The CMF indicator is bullish with the histogram above zero, demonstrating that buying pressure exceeds any selling pressure.
The outlook for Gold Bullion Development remains very bullish for the forseeable future given this powerful chart and the many fundamental factors in the company’s favor.
I see you also use the ADX indicator. It is a good indicator to use.
Great chart indeed…if ever I’ve seen one
Look at Traders Bonanza website, June 07,2010… (Gold Bullion Development Corp. worthy of its name?)
Keep up the good work!
Cheers,
YeOld
Comment by YeOldGoldNugget — June 12, 2010 @ 4:41 am
GBB share price is steadily progressing and investors love this stock with great blue sky potential. Potential will not be the right word as test results will evidence all the facts and investors will hesitate to sell them at that stage. If you do not want to invest in junior stocks, you can still continue reading BMR’s professional analysis…. it will be a very interesting one at least for the next 6 – 12 months. Reading BMR daily analysis becomes a must for me. Thanks again
Comment by Theodore — June 12, 2010 @ 4:00 pm